Benzinga | Jul 23, 2021 07:53AM EDT

Honeywell International Tops Q2 Earnings With Double-Digit Growth In Revenue, Raises FY21 Guidance

* Honeywell International Inc (NASDAQ:HON) reported second-quarter sales growth of 18% year-over-year to $8.81 billion (+15% on an organic basis), beating the consensus of $8.68 billion.

* The company says results were driven by top-line growth and margin expansion in all four segments.

* Adjusted EPS of $2.02 improved by 60% Y/Y, beating the consensus of $1.94.

* Aerospace sales increased 9%Y/Y to $2.77 billion, and segment margin expanded by 490 bps to 25.7%.

* Honeywell Building Technologies sales increased by 20% Y/Y to $1.41 billion, and segment margin expanded by 120 bps to 22.4%.

* Performance Materials and Technologies sales increased by 15% Y/Y to $2.55 billion, and segment margin expanded by 190 bps to 20.8%.

* Safety and Productivity Solutions sales increased by 35% Y/Y to $2.08 billion, and segment margin expanded by 20 bps to 14%.

* Segment margin expanded by 190 bps to 20.4%, reflecting increased volumes, streamlined cost base, and relentless focus on execution.

* The operating margin expanded by 450 bps to 18.1%.

* Honeywell generated $1.28 billion in operating cash flow, compared to $1.48 billion a year ago. Free cash flow was $1.47 billion.

* FY21 Guidance: The company expects sales of $34.6 billion-$35.2 billion vs. consensus of $34.93 billion, with organic growth in the range of 4%-6%, compared to $34.0 billion-$34.8 billion previously guided. It expects segment margin of 20.8% - 21.1%.

* Honeywell sees adjusted EPS of $7.95-$8.10 vs. the consensus of $8.10, compared to $7.75-$8.00 previously guided.

* It expects operating cash flow of $5.9B - $6.2B, compared to $5.8B - $6.1B prior guidance. The free Cash Flow outlook is $5.3B - $5.6B vs. previous guidance of $5.2B - $5.5B.

* Price Action: HON shares are down 0.15% at $232.39 during the premarket session on the last check Friday.