Honeywell lowers Q4 rev guidance, reaffirms Q4 EPS; guides FY15 EPS ~in-line, rev below consensus
Co issues guidance for Q4 (Dec), reaffirms EPS of $1.37-1.42, excluding non-recurring items, vs. $1.43 Capital IQ Consensus; lowers Q4 (Dec) revs to $10.1-10.2 bln from $10.3-10.4 bln vs. $10.38 bln Capital IQ Consensus Estimate.
Co issues guidance for FY15 (Dec), sees EPS of $5.95-6.15, excluding non-recurring items, vs. $6.11 Capital IQ Consensus Estimate; sees FY15 (Dec) revs of $40.5-41.1 bln vs. $41.97 bln Capital IQ Consensus; organic sales up ~4%.
On track to achieving 2018 long-term targets
"We expect 2015 to be another strong year for Honeywell with across the board growth in sales, margin, EPS, and free cash flow," said Honeywell Chairman and CEO Dave Cote. "Our 2015 outlook tracks very well to the five year targets that we set for 2018 earlier this year. We sustained our 'seed planting' investments for the future, including innovating new products and technologies and expanding geographically, all of which will position the portfolio for continued growth. Similarly, we will use the gain on sale of B/E Aerospace shares in the fourth quarter to proactively fund Aerospace OEM incentives related to new platform wins. Our balanced portfolio mix of short- and long-cycle businesses, improving end markets, new product introductions, penetration in high-growth regions, and HOS Gold growth and productivity focus will all continue to drive Honeywell outperformance over the long term. While we're expecting only modest GDP growth in most regions around the world next year and will accordingly continue to be conservative in our cost and resource planning, our plan is to deliver higher organic growth, strong margin expansion, and double-digit earnings growth once again in 2015."
Co issues guidance for FY15 (Dec), sees EPS of $5.95-6.15, excluding non-recurring items, vs. $6.11 Capital IQ Consensus Estimate; sees FY15 (Dec) revs of $40.5-41.1 bln vs. $41.97 bln Capital IQ Consensus; organic sales up ~4%.
On track to achieving 2018 long-term targets
"We expect 2015 to be another strong year for Honeywell with across the board growth in sales, margin, EPS, and free cash flow," said Honeywell Chairman and CEO Dave Cote. "Our 2015 outlook tracks very well to the five year targets that we set for 2018 earlier this year. We sustained our 'seed planting' investments for the future, including innovating new products and technologies and expanding geographically, all of which will position the portfolio for continued growth. Similarly, we will use the gain on sale of B/E Aerospace shares in the fourth quarter to proactively fund Aerospace OEM incentives related to new platform wins. Our balanced portfolio mix of short- and long-cycle businesses, improving end markets, new product introductions, penetration in high-growth regions, and HOS Gold growth and productivity focus will all continue to drive Honeywell outperformance over the long term. While we're expecting only modest GDP growth in most regions around the world next year and will accordingly continue to be conservative in our cost and resource planning, our plan is to deliver higher organic growth, strong margin expansion, and double-digit earnings growth once again in 2015."