Industrial conglomerate Honeywell International reported first-quarter numbers that beat Wall Street estimates. Full-year earnings guidance also was raised and the stock moved higher.
Honeywell (ticker: HON) reported adjusted earnings per share of $1.91 from $8.4 billion in sales. Analysts were looking for EPS of $1.86 from $8.3 billion in sales. A year ago, in the first quarter of 2021 , Honeywell reported EPS of $1.92 from $8.5 billion in sales.
Earnings guidance for 2022 was increased by 10 cents a share. Coming into the quarter, Honeywell expected to earn between $8.40 and $8.70 a share from about $35.9 billion in sales this year. Now Honeywell expects EPS to land between $8.50 and $8.80 a share. Sales guidance was unchanged.
For the second quarter, Honeywell expects to earn about $2.03 a share. Analysts are currently projecting $2.04.
It looks like a solid report. Credit Suisse analyst John Walsh wrote he expected a positive stock price reaction in a Friday report, adding that Honeywell's remarks about the end markets it serves were more positive than what investors heard from industrial peers General Electric (GE) and 3M (MMM).
Walsh rates Honeywell stock at Hold and has a $210 price target for shares.
That looks like the right call so far. Shares were up about 1.8% in premarket trading, at about $193. Futures on the S&P 500 and Dow Jones Industrial Average fell 0.6% and 0.3%, respectively.
"Honeywell delivered a strong start to 2022, meeting or exceeding expectations in the first quarter despite considerable new macroeconomic challenges and the ongoing impact of supply chain constraints," said CEO Darius Adamczyk in the company's news release.
Aerospace and building technology sales were up 5% and 8%, respectively, year over year on a comparable basis. Sales in the company's safety and productivity solutions business fell 15% partly because of less sales of personal protective equipment such as masks.
Coming into Friday trading, Honeywell shares are down about 9% year to date. The S&P 500 is off about 10%.