Honeywell on Friday posted third-quarter adjusted earnings and sales that beat analysts’ forecasts as double-digit growth in its defense and space, warehouse automation and PPE products and services offset a drop in aerospace revenue.
The company also reinstated guidance for its fourth quarter and full year amid expectations that the worst effects of the pandemic are past.
Honeywell posted net income of $781 million, or $1.07 a share, vs. $1.65 billion, or $2.23 a share, in the comparable year-ago period. On an adjusted basis, the company earned $1.56 a share, above the $1.49 a share expected by analysts polled by FactSet.
Sales came in at $7.8 billion, down 14% from $9.1 billion a year ago though above analysts’ forecasts of $7.7 billion. Aerospace sales, which includes parts for commercial airplanes, fell 25% year-over-year, driven by reduced flight hours and lower volumes among carriers due to the pandemic and drop-off in travel.
However, sales of "safety and productivity solutions" gained 8%, driven by double-digit sales of personal protective equipment as well as a return to growth in productivity solutions and services, Honeywell said.
Orders for PPE were up approximately 150%, with backlog at a record high.
The Charlotte-based company also reinstated guidance for its fourth quarter and full year.
Honeywell said it expects fourth-quarter sales of between $8.2 billion and $8.5 billion, and per-share earnings of between $1.97 and $2.02. Full-year sales are expected to be in the range of $31.9 billion to $32.2 billion, with adjusted per-share earnings coming in at between $7 and $7.05.
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