From CNBC: 2024-04-25 14:20:58

Honeywell exceeded first-quarter sales and earnings expectations, with revenue of $9.1 billion, a 3% rise year over year. However, shares are under pressure due to softer guidance for the next quarter and uncertainty about recovery in key businesses. Adjusted earnings per share of $2.25 surpassed the consensus forecast, with a segment margin of 22.2%.

Despite strong results, Honeywell’s backlog rose to $32 billion, and management is optimistic about long-cycle demand staying strong. Aerospace and energy solutions saw growth, but industrial automation and building automation were weak. Guidance for the current quarter fell below expectations, but the full-year outlook remains unchanged amid hopeful signs of improvement ahead.

While aerospace technology and energy solutions saw growth, industrial automation and building automation were weak. Aerospace had double-digit growth, while industrial automation and building automation struggled. Orders in the building automation business improved sequentially. The energy and sustainability solutions segment saw some organic growth, boding well for the future.

Honeywell’s outlook for the current quarter is below expectations, but the full-year forecast is steady. Management expects a back-half recovery in 2024, with conditions expected to improve. Long-cycle businesses like aerospace are driving growth, while short-cycle segments may see a modest rebound. Continuous divestment of non-core assets and focusing on key megatrends remain strategies for growth.



Read more at CNBC:: We’re lowering our Honeywell price target after earnings. The risk-reward is still favorable