Honeywell International, Inc. (NYSE: HON) on Thursday posted mixed second quarter results, sending its share price up as much as 2.4% on the day. The defense contractor beat on earnings estimates, generating USD 2.10 per share compared to expectations of USD 2.08. Revenue fell short, however. The Company posted sales of USD 9.24 Million, a 15% decline from the year-quarter prior. This missed consensus estimates of USD 9.36.
Honeywell recorded positive organic revenue growth in all but one of its business segments.
The Company posted sales growth of 11% in its Aerospace unit thanks to continued strength in the U.S. and international Defense and Space business. Its Building Technologies unit sales rose 5% during the quarter fueled by strength in commercial fire products and building management software. Revenue from the Performance Materials and Technologies division, which developes and manufactures advanced materials, rose 4%. Only Honeywell’s Safety and Productivity Solutions business failed to deliver positive growth. Sales declined 4% in the segment due to fewer large project rollouts.
“I’m very pleased by our performance in the first half,” said Darius Adamczyk, Honeywell Chairman and Chief Executive Officer. “We still have substantial work to do to achieve our plan, but I’m confident that the team will continue to execute.” Adamczyk indicated the Company will plan “cautiously” for the second half of 2019 given the uncertain macro environment in which Honeywell operates.
Although the Company said it has seen a slowdown in certain short cycle businesses, Honeywell raised its full-year earnings guidance by USD 0.05 a share to a new range of USD 7.95 to USD 8.15. The Company also raised its organic sales growth guidance to a new range of 4% to 6%, up from 3% to 6%.
Shares of Honeywell have gained 31% this year versus competitors like Lockheed Martin Corp. (NYSE: LMT), up 36%, and Raytheon Co. (NYSE: RTN), up 15%.