Honeywell Inc. (HON - Get Report) posted stronger-than-expected second quarter earnings Thursday, and boosted its full-year profit guidance, as it aerospace division recorded double-digit sales growth thanks to strength in its U.S. and international defense and space business.
Honeywell said earnings for the three months ending in June came in at $2.10 per share, down around 1% from the same period last year but 2 cents ahead of the Street consensus forecast. Group revenues, Honeywell said, fell 15.3% to $9.243 billion, a figure that just missed analysts' forecasts of a $9.37 billion.
However, Honeywell said it would boost the lower end of its full-year earnings guidance, with a new range of $7.95 to $8.15 per share, and now sees full-year organic sales growth of between 4% an 6%, up 100 basis points at the lower end from its prior forecast.
"We are making significant progress in transforming Honeywell into a premier software-industrial company, with connected software sales continuing to grow at a double-digit rate organically. The Honeywell Connected Enterprise foundation is firmly in place, supported by the launch of Honeywell Forge, a comprehensive IIoT software solution," said CEO Darius Adamczyk.
"Our long-cycle backlog was up over 10%, which positions us well for the second half of 2019. We also saw robust demand in our short-cycle commercial fire, process automation services and software, and aerospace aftermarket businesses," he added. "Segment margin expanded 170 basis points year-over-year, which was 30 basis points above the high end of our guidance."
Honeywell shares were marked 1.08% higher following the earnings release to change hands at $170.45 each, a move that would extend the stock's year-to-date gain to around 29%.