American Express (AXP) Q3 income up 70%, Honeywell (HON) sales up 9%

Honeywell International Inc.  stocks fell 1.78%, and American Express Company (NYSE: AXP) stocks jumped 4.76% after declaring the third-quarter results Friday.

Honeywell International Inc. traded at US$220.52, and American Express Company was priced at US$185.925 at 10:39 am ET.

Honeywell International Inc. (NASDAQ: HON)

The company posted sales of US$8.47 billion, 9% higher than the previous year's sales of US$7.79 billion for the same period. The organic sales increased by 8%, and the operating margin grew by 180 basis points to 18.6%.

Aerospace sales for the third quarter were US$2.73 billion, up 2% on an organic basis, while Honeywell building technologies sales were US$1.37 billion, 3% higher organic growth, and performance materials and technologies sales were up 9% on an organic basis to US$2.51 billion. Safety and Productivity Solutions sales were US$1.86 billion, a 21% increase YoY, on an organic basis. 

The net income to the company was US$1.26 billion compared to US$0.758 billion for the September quarter in 2020. The earnings per share diluted was US$1.80, and adjusted earnings per share were US$2.02.

The company has used US$1.5 billion for share repurchases, dividends, capital expenditures, and acquisitions.

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Guidance for the full year

Honeywell expects sales to be between US$34.2 billion to US$34.6 billion and organic sales growth to be between 4% to 5%. 

Segment margin is expected to be within 20.9% to 21.1%, and adjusted earnings per share to remain in the range of US$8.00 to US$8.10.

The operating cash flow expectation for the full year is between US$5.9 billion to US$6.2 billion, and free cash flow is in the range of US$5.3 billion to US$5.6 billion.  

The technology company provides industry-specific solutions, including aerospace products and services, control technologies, and performance materials. The Charlotte, North Carolina-based company’s market capitalization is US$152 billion, P/E ratio is 31.24, and dividend yield is 1.66%.

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Source – Pixabay

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American Express Company (NYSE: AXP)

The financial firm’s consolidated total revenues net of interest expense jumped 25% YoY to US$10.9 billion, compared to US$8.8 billion for the same period a year ago.

The net income was US$1.8 billion, or US$2.27 per share, compared to the net income of US$1.1 billion, or US$1.30 per share, for Q3 in the previous year. A growth of 70 per cent.

The consolidated expenses were US$8.7 billion compared to US$6.7 billion of the previous year’s quarter, reflecting a 29% increase, primarily due to higher customer engagement costs.

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Global Consumer Services Group revenues net of interest expense were US$6.4 billion, up 21% YoY. The pretax income was US$1.5 billion.

Global Commercial Services revenues net of interest expense were US$3.2 billion, 28% higher YoY. The pretax income was US$718 million.

Global Merchant and Network Services revenues net of interest expense were US$1.3 billion, up 28% from the previous year and pretax income was US$529 million.

New York-based American Express is a globally integrated payments company. It provides charge and credit card products to businesses and consumers. The company has a presence in around 130 countries. Its current market capitalization is US$148 billion, its P/E ratio is 21.63, and its dividend yield is 0.96%.

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Bottom line

American Express’s YTD return is 53.24%, and Honeywell had a 3.36% return for the same duration, whereas the S&P 500 generated a 21.12% return year-to-date. Investors should analyze the company and its fundamentals before investing in the stocks.