Honeywell International Inc. Q3 Earnings Report

CHARLOTTE – Honeywell International Inc. (NASDAQ: HON) reported third-quarter earnings that exceeded analyst estimates, though revenue fell short, leading to a 2.5% drop in shares during early trading on 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 the expectations of $9.91 billion.

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

Despite the revenue miss, Honeywell reported a 3% year-over-year organic sales growth, aided by strong performance in defense and space, commercial aviation, and building solutions. Aerospace Technologies sales grew 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," stated Vimal Kapur, chairman and CEO of Honeywell. "Our Accelerator operating system and culture of execution enabled us to grow segment profit by 6% despite transitory sales headwinds."

The company's operating margin decreased by 180 basis points to 19.1%, mainly due to an impairment related to classifying its personal protective equipment business as assets held for sale. Free cash flow rose 10% year-over-year to $1.7 billion.

Honeywell additionally 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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