Honeywell reaffirms FY 2022 guidance, set to raise long-term targets
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Honeywell (NASDAQ:HON)
+0.5% pre-market as it kicks off its annual investor conference, saying it is raising its long-term financial framework, including organic growth, margin expansion and long-term segment margin targets.
Honeywell sets a new goal for annual organic sales growth of 4%-7%, up from its prior goal of 3%-5% growth, while operating profit margins are seen expanding at 40-60 basis points annually, vs. its previous goal of 30-50 bps. 
The company pledges to use $25B of cash through stock buybacks, dividends and acquisitions over the next three years, including $4B in share repurchases in 2022.
At the conference, Honeywell says it will discuss upgrades to its long-term financial framework, increasing capital deployment commitments, anticipated growth acceleration and enhanced margin expansion, and stronger alignment to improved environmental, social and governance outcomes and disclosures.
The company reaffirms FY 2022 guidance for adjusted EPS of $8.40-$8.70 on revenues of $35.4B-$36.4B, segment margin expansion of 10-50 bps, and free cash flow of $4.7B-$5.1B.
Honeywell has a strong track record as a well-led conglomerate, but 2021 results and 2022 guidance are "underwhelming," The Value Investor writes in an analysis published on Seeking Alpha.