Honeywell $HON Beat Earnings, Raised Guidance on Aerospace Strength

Industrial and aerospace heavyweight Honeywell $HON reported better than expected earnings on Friday before the market opened and reffirmed guidance.  Just last week Honeywell confirmed it would split two noncore units into separate publicly traded companies by years end.

Industrial and aerospace heavyweight Honeywell $HON reported better than expected earnings on Friday before the market opened and reffirmed guidance.  Just last week Honeywell confirmed it would split two noncore units into separate publicly traded companies by years end.

Honeywell AeroSpace

Honeywell Aerospace Positioning Itself in global markets

Earnings: Earnings per share of $1.75 and sales of $10.1 billion versus expected EPS of $1.75 on revenue of $9.96 billion

Reaction: Honeywell International Inc.NYSE: HON Oct 20, 8:06 AM EDT After-hours $144.90 +1.28 +0.89%

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For our earlier $GE forecast go here: GE Consensus Forecast

  • Qtrly segment margin ‍18.7 percent versus 17.5 percent
  • Qtrly aerospace segment sales $3,657 ‍​million versus. $3,601 million

If congress can pass regulatory rollbacks after the GOP’s unsuccessful attempt to replace the Affordable Care Act the company as much to gain is the theory.

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Outlook

$HON expects sales to be $40.2-40.4Bil and adjusted diluted EPS to be $7.05-7.10.

For 4Q17, the company expects sales to be $10.5-10.7Bil.

HoneyWell Spinoffs

On October 10 Honeywell announced they were spinning off it’s automotive turbochargers and the household-systems operations. Chief Executive Officer Darius Adamczyk expects $3 billion from spinning off those units, and Honeywell will use the money to repay debt, buy back shares and prowl for The two spinoffs will be tax-free  are expected to be completed by the end of 2018. They have combined sales of around $7.5 billion of around a total of $39.3 billion last year.

Source: Honeywell, AlphaStreet

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