Honeywell International (NYSE: HON) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has reported first quarter earnings and revenue above Wall Street’s expectations on higher aerospace repair and overhaul volume and growing automation and control systems sales in China.
The Morris Plains, N.J.-based industrial conglomerate posted earnings of $1.53 per share to exceed analyst forecasts by 3 cents and lifted its minimum EPS guidance to $6.55 from the prior $6.45 forecast with the high-end outlook unchanged at $6.70.
Overall profit for the January-March period came in at $1.19 billion to register a 7.21-percent increase from the same quarter last year.
First quarter revenue grew 3.36 percent from the prior year period to $9.52 billion versus Wall Street’s forecast of $9.37 billion and the company raised the low end of its full-year sales guidance to $40.3 billion from the previous $39.9 billion outlook.
Honeywell left the high end of its 2016 revenue forecast unchanged at $40.9 billion.
Revenue in the aerospace systems segment increased 2.71 percent year-over-year to $3.7 billion — 38 percent of overall first quarter sales — on growth in repair and overhaul services, new platform launches and shipments to commercial aviation customers.
The company reported an approximate 1-percent decline in sales for the segment’s defense and space business on timing of U.S. programs and lower international volume.
Automation and control segment sales rose 12.88 percent to $3.68 billion on growth in China with performance materials and technologies down 8.55 percent on impacts from a strong U.S. dollar and lower raw materials pass-through pricing for resins and chemicals.
As of Thursday’s close, shares in Honeywell are up 11.21 percent from the year’s start and 13.41 percent over 12 months.
