Honeywell shares fall after earnings, outlook disappoints Wall Street

Shares of Honeywell International ( HON ) fell on Thursday after the aerospace and safety equipment maker missed sales estimates and cut its revenue guidance as demand for its industrial automation products was reduced

Honeywell reported third-quarter revenue rose nearly 6% year over year to $9.73 billion, while analysts polled by Visible Alpha were looking for $9.89 billion. Adjusted earnings per share (EPS) of $2.58 beat forecasts.

Honeywell shares were recently down more than 5%, leaving them slightly up for the year. The move weighed on the top-tier Dow.

Sales in its industrial automation segment declined 5% to $2.5 billion, which the company attributed to “volume softness in warehouse and workflow solutions and security and detection technologies.”

Sales got a big boost from Honeywell’s aerospace technology sector, which rose 12% to $3.91 billion, led by its defense and space offerings. Sales of its smaller building automation and energy and sustainability solutions units were higher by 14% and 1%, respectively.

CEO Says Honeywell ‘Run Through Challenging Environment’

Chief Executive Officer (CEO) Vimal Kapur said the company “executed in a challenging environment in the third quarter.”

Kapur added that this year it made significant progress “in simplifying and optimizing Honeywell’s portfolio,” which included the planned separation of its advanced materials division and the exit of its personal protective equipment (PPE) business, as well as the closing of four acquisitions.

The company explained that due to the closing of these purchases, along with third-quarter results and management’s outlook for the rest of the year, it lowered its sales forecast for 2024 to a range of $38.6 billion to $3.88 billion from the previous prediction of $39.1 billion. to 39.7 billion dollars. It narrowed the adjusted EPS range to $10.15 to $10.25 from $10.05 to $10.25.