Honeywell Profit Rises 17%, Shares Rally
Honeywell International (NYSE:HON) reported mixed first-quarter earnings and lowered its full-year sales outlook on Friday, however its shares climbed 3% in early trade as it raised the lower-end of its prior fiscal 2013 non-GAAP EPS guidance and its gross margins improved.
The Morristown, N.J.-based diversified manufacturer, which makes aerospace-related technologies such as cockpit electronics systems, reported net income of $1.21 a share, up 16% from $1.04 a share a year ago.
The results topped average analyst estimates of $1.14 a share in a Thomson Reuters poll.
Honeywell's gross margins rose to 16.2% from 15.2% last year, sending its shares up 3% in recent trade to $73.49.
However, revenue for the three-month period was $9.3 billion flat from a year ago and short of the Street’s view of $9.44 billion.
For the full-year, Honeywell sees 2013 sales between $38.8 billion to $39.3 billion a year ago, down from its prior guidance of $39 billion and $39.5 billion, below the consensus view of $39.38 billion.
Honeywell upped the lower-end of its EPS guidance to $4.80 to $4.95 from an earlier view of $4.75 to $4.95, the mid-point of the guidance is below the Street’s view of $4.94 a share.