Honeywell Cuts Profit Guidance, Sending Its Stock Lower

Shares of Honeywell International (HON) fell complete 4% successful intraday trading Thursday aft nan shaper of a immense array of commercialized products lowered its full-year profit guidance based connected management's outlook for nan remainder of nan year, including nan effect of precocious announced acquisitions.

Honeywell now anticipates fiscal 2024 adjusted net per stock (EPS) of $10.05 to $10.25, down from its erstwhile outlook of $10.15 to $10.45. However, it raised its gross guidance to a scope of $39.1 cardinal to $39.7 cardinal from its earlier guidance of $38.5 cardinal to $39.3 billion.

The news offset beardown second-quarter results, pinch Honeywell reporting adjusted EPS of $2.49, pinch gross rising 4.7% from a twelvemonth agone to $9.58 billion. Both were supra estimates. 

Organic Sales Rise

Organic sales astatine Honeywell's Aerospace Technologies section jumped 16% to $3.89 cardinal arsenic rising world formation activity and geopolitical tensions boosted request for commercialized aviation and defense products. Sales besides roseate astatine its Energy and Sustainability Solutions and Building Automation units, by 3% and 1%, respectively. They dropped 8% astatine its Industrial Automation segment, which Honeywell blamed chiefly connected measurement softness successful storage and workflow solutions.

CEO Vimal Kapur said that during nan play nan institution was “maneuvering done a move operating environment.” He said that each 4 of Honeywell’s units showed integrated income gains from nan first quarter, “giving america further assurance successful our anticipation of a 2nd half integrated maturation acceleration." 

Shares of Honeywell fell 4.9% to $203.10 arsenic of 11:30 a.m. ET Thursday pursuing nan news, and into antagonistic territory for 2024.