The Morris Plains, NJ-based aerospace systems and industrial products maker reported Q4 EPS of $1.74, which matched the Wall Street consensus view of $1.74. Revenues were flat from last year at $9.98 billion, missing analysts’ $10.15 billion estimate.
Honeywell noted that Aerospace sales for the fourth quarter fell 5%, hurt by weaker volumes and ongoing weakness in the commercial helicopter business. Home and Building Technologies sales for Q4 gained 2%, helped by continued strength in the Building Solutions and Distribution businesses, along with double-digit growth in China and India. Performance Materials and Technologies sales rose 5%, driven by rising licensing sales and equipment sales growth.
Finally, Q4 Safety and Productivity Solutions sales fell 6%, impacted by lower volumes in the Productivity and Safety businesses, along with supply chain delays.
The company commented via press release:
“Our business will benefit in the future from the investments we made in 2016. All of these actions, combined with our focus on enhancing organic growth, and the power of our connected businesses, make us optimistic about 2017 and beyond. We are reaffirming our 2017 earnings guidance today. As I discussed on our December outlook call, Honeywell will continue our focus on driving organic growth and margin expansion through new software opportunities, breakthrough initiatives, and an improved customer experience. We look forward to discussing this more at our annual investor conference on March 1 in New York City.”
Honeywell International Inc. shares fell $2.97 (-2.52%) to $115.00 in premarket trading Friday. Prior to today’s report, HON had gained 1.83% year-to-date, versus a 2.59% rise in the benchmark S&P 500 index during the same period.
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