Honeywell Shares Plummet 6% on Lowered Outlook

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October 7, 2016 9:00am NYSE:HON

Honeywell logoIndustrial stalwart Honeywell International Inc. (NYSE:HON) slashed its third quarter earnings forecast last night, sending its shares sharply lower.


The Morris Plains, NJ-based company said it now expects Q3 EPS of $1.67 per share, down from prior guidance of $1.67 to $1.72. On average, Wall Street analysts are looking for $1.70 per share for the latest quarter.

Honeywell cited ongoing restructuring for the change, which includes the separation of its Automation and Control Solutions unit, as well as its recent $1.5 billion acquisition of Intelligrated. That buyout was announced back in July.

For the fourth quarter of 2016, HON forecast earnings of $1.74 to $1.78 per share, which would also miss analyst estimates of $1.80. Honeywell also said it expects earnings of $6.60 to $6.64 per share for the full year, lower than the consensus estimate of $6.67.

Finally, the company said it may look to refinance some of its debt in Q4, which “would lower interest expense in 2017 and beyond, but result in a fourth-quarter pre-tax charge of approximately $140 million. The refinancing transaction is dependent on continued favorable interest rate and credit market conditions.”

HON-2016-10-07

Honeywell shares fell $6.63 (-5.73%) to $108.98 in premarket trading Friday. Prior to today’s news, HON had gained 11.62% since the start of 2016, versus a 5.87% gain in the benchmark S&P 500 index during the same period.


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