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Highlights

  • Honeywell’s Q3 FY24 net sales grew 5.60%, reaching USD 9.73 billion
  • Despite a 6.67% drop in net profit, operating cash flow surged 60% to USD 3.82 billion.
  • Honeywell and Google Cloud announced an AI collaboration with an aim to enhance industrial safety and autonomy by 2025.

Honeywell International Inc. (NYSE: HON) is an advanced technology company with a market cap of USD 146.46bn.

In the third quarter of FY24, the company saw a 5.60% increase in net sales, reaching USD 9.73 billion, driven by higher sales in both its product and services segments. However, net profit decreased by 6.67% to USD 1.41 billion, mainly due to rising costs of revenue and higher operating expenses.

On a positive note, operating cash flows increased significantly by 60% to USD 3.82 billion. It was attributed to higher net income and a positive change in net working capital. Cash and cash equivalents also rose by 51.52%, totaling USD 10.64 billion, primarily due to cash inflows from operations and financing activities, despite some outflows from investing activities.

Recent Business Update

Company Outlook

Following positive results in Q3 and positive expectations for the rest of the year, Honeywell updated its full-year financial guidance. The company now expects sales to be between USD 38.6 billion and USD 38.8 billion, with organic growth of 3% to 4%. Segment margin is forecasted to be around 23.4% to 23.5%, which could be a slight decline of up to 10 basis points compared to last year. Adjusted earnings per share are expected to be between USD 10.15 and USD 10.25, reflecting a 7% to 8% increase. Operating cash flow is forecasted to be between USD 6.2 billion and USD 6.5 billion, while free cash flow is expected to range from USD 5.1 billion to USD 5.4 billion.

Top 10 Shareholders

The top 10 shareholders of Honeywell own about 33.63% of the total shares. The largest shareholders are The Vanguard Group, Inc. and State Street Global Advisors (US). Vanguard holds approximately 9.32%, while State Street holds around 4.76%.

Stock Performance

Over the past three months, the stock price of Honeywell has delivered a return of 14.46%, closely mirroring the 14.13% return over the last nine months. Currently, the stock is trending near the upper end of its 52-week range, with a high of USD 225.32 and a low of USD 185.71.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 11, 2024. The reference data in this report has been partly sourced from EODHD/Others.