By Michael Dabaie


Honeywell shares were up 2.8% to $195.20 after first quarter results beat analyst views.

Sales of $8.4 billion came in ahead of FactSet consensus for $8.3 billion. The company said sales, which were down 1% on year, were at the high end of its guidance.

Honeywell's operating margin contracted by 260 basis points to 15.2% due to a $183 million charge related to the suspension of its operations in Russia, which translated to a loss of approximately $30 million in sales in the first quarter, the company said.

Adjusted earnings per share of $1.91 were above FactSet consensus of $1.86.

The company guided for full-year sales in the range of $35.5 billion to $36.4 billion. The FactSet consensus expectation was for $36 billion.

Adjusted earnings per share is now expected to be in the range of $8.50 to $8.80. The FactSet consensus was for $8.62. Honeywell said the guidance was up 10 cents on both ends to reflect the updated share repurchase target unveiled at its investor day.

Chief Executive Darius Adamczyk said in the company's earnings conference call that Honeywell delivered despite a challenging backdrop that included ongoing supply chain constraints, inflation headwinds and global unrest.

"We expect supply chain impacts to remain as challenging in the second quarter as they were in the first quarter but to start to abate as capacity for electronic components comes online," in the third quarter, Chief Financial Officer Greg Lewis said in the call.

"We're confident in the eventual return to normalcy in the Aerospace supply chain. However, the timing remains difficult to call," he said.

Mr. Lewis said inflation will continue to be a significant headwind, but the company's pricing actions will continue to damp impacts to margin throughout the year.


Write to Michael Dabaie at michael.dabaie@wsj.com


(END) Dow Jones Newswires

04-29-22 1302ET