Honeywell Lifts FY24 Earnings View Above Market, Cuts Sales Forecast Below Street - Update

(RTTNews) - Honeywell International Inc. (HON), while reporting third-quarter earnings below last year, but above market estimates, on Thursday raised the lower end of its fiscal 2024 earnings guidance range, above the Street estimates. Meanwhile, the firm trimmed annual sales view below the market.

In pre-market activity on the Nasdaq, Honeywell shares were losing around 2.42 percent to trade at $215.

The outlook revision reflects the company's third-quarter performance and management's outlook for the remainder of the year, including the impact of recently closed acquisitions.

For fiscal 2024, adjusted earnings per share is now expected to be in the range of $10.15 to $10.25, up 7 percent to 8 percent year over year. The company previously expected adjusted earnings per share to be in the range of $10.05 to $10.25.

Analysts on average expect the company to earn $10.13 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Full-year sales are now expected to be $38.6 billion to $38.8 billion with organic sales growth of 3 percent to 4 percent. The previous outlook was for sales of $39.1 billion to $39.7 billion with organic sales growth in the range of 5 percent to 6 percent. The Street is looking for sales of $39.2 billion for the year.

Segment margin is now expected to be in the range of 23.4 percent to 23.5 percent with segment margin flat to down 10 basis points year over year.

In its third quarter, Honeywell's net earnings attributable totaled $1.413 billion, or $2.16 per share, down from $1.514 billion, or $2.27 per share, in last year's third quarter.

Adjusted earnings were $2.58 per share for the period. Analysts had expected the company to earn $2.50 per share.

Operating income decreased 4 percent and operating margin contracted 180 basis points to 19.1 percent

The company's net sales for the quarter rose 5.6 percent to $9.728 billion from $9.212 billion last year. Organic sales growth was 3 percent.

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