Honeywell said earnings for the three months ending in March came in at $1.92 per share, up 4.3% from the same period last year and ahead of the Street consensus forecast of $1.83 per share. Group revenues, Honeywell said, fell 15% from last year to $8.884 billion, but were paced by a 10% increase in organic sales from the group's aerospace division to $3.34 billion.
Looking into 2019, Honeywell said it sees full-year revenues in the region of $36.5 billion to $37.2 billion, a $300 million improvement from the prior forecast, with an organic growth rate of between 3% and 6%, up from a previous estimate of between 2% and 5%. Segment margins are also seen rising between 1.1% and 1.4% this year, Honeywell said, while earnings are expected to be in the range of $7.90 to $8.15 per share, a 15 cent bump at the higher end of the prior forecast.
"Honeywell delivered a very strong start to 2019 with first-quarter results that exceeded the high end of our sales and earnings guidance," said CEO Darius Adamczyk. "Segment margin was above 20% for the second quarter in a row with 120 basis points of segment margin expansion year-over-year driven by the favorable impact of the spin-offs, increased sales volumes, and operational improvements."
"We are very pleased with the start to 2019. Organic sales growth was strong in all of our segments this quarter," Adamczyk said. "Our long-cycle backlog increased more than 10%, and our investments in new product development and commercial excellence are delivering results, while positioning the company for short- and long-term success,"
Honeywell shares were marked 3.66% higher in pre-market trading immediately following the earnings release to change hands at $168.92 each, a move that would extend the stock's year-to-date gain to around 27%.