Honeywell shares fall as revenue and guidance miss expectations

CHARLOTTE - Honeywell International Inc. (NASDAQ:HON ) reported third-quarter earnings that beat analyst estimates, but revenue fell short and the company lowered its full-year outlook, sending shares down 2.5% in early trading Thursday.

The industrial conglomerate posted adjusted earnings per share of $2.58, surpassing the consensus estimate of $2.50. However, revenue of $9.7 billion missed expectations of $9.91 billion.

Honeywell lowered its full-year 2024 revenue guidance to a range of $38.6 billion to $38.8 billion, below the previous analyst consensus of $39.2 billion. The company also tightened its adjusted EPS forecast to between $10.15 and $10.25, compared to the prior $10.13 consensus.

Despite the revenue miss, Honeywell reported organic sales growth of 3% YoY, driven by strength in defense and space, commercial aviation, and building solutions. Aerospace Technologies sales rose 10% organically, marking the ninth consecutive quarter of double-digit organic growth.

"Honeywell executed through a challenging environment in the third quarter, delivering segment margin and adjusted earnings per share above the high end of our guidance," said Vimal Kapur, chairman and CEO of Honeywell. "Our Accelerator operating system and culture of execution enabled us to grow segment profit by 6% in spite of transitory sales headwinds."

The company's operating margin contracted 180 basis points to 19.1%, primarily due to an impairment related to classifying its personal protective equipment business as assets held for sale. Free cash flow increased 10% YoY to $1.7 billion.

Honeywell also announced plans to spin off its Advanced Materials business and exit its personal protective equipment business as part of ongoing portfolio optimization efforts.

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Source: Investing.com