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Honeywell, Textron Post 2Q Earnings Beats

MoneyHoneywell International (NYSE: HON) and Textron (NYSE: TXT) both posted second quarter earnings above analyst expectations before markets opened Friday.

The GovCon Index and S&P 500-listed companies were mixed on the revenue front as Honeywell’s increased 2.25 percent from the prior year period but fell short of analyst estimates, while Textron’s sales jumped 8 percent and topped Wall Street’s forecasts.

Honeywell also lowered its full-year sales guidance to $40.0 billion-to-$40.6 billion from the prior $40.3 billion-to-$40.9 billion.

The Morris Plains, N.J.-based industrial conglomerate said second quarter earnings came in at $1.66 per share to beat analyst forecasts by 2 cents and raised the low end of full-year EPS guidance to $6.60 from $6.55 with the $6.70 ceiling left unchanged.

April-June revenue totaled $9.99 billion on higher sales in the automation and climate control systems segment compared to Wall Street estimates of $10.13 billion.

The company’s aerospace segment posted a 1.3-percent decline year-over-year and nearly 2 percent when adjusted for currency fluctuations on defense and space program delays and lower aviation shipments.

Net income for Honeywell increased 5.74 percent year-over-year to $1.29 billion.

Textron’s second quarter earnings were 66 cents per share to exceed analyst expectations by 2 cents and the Providence, R.I.-based aircraft maker left full-year EPS guidance unchanged at $2.60-to $2.80.

Revenue increased 8 percent to $3.51 billion versus Wall Street’s expectation of $3.36 billion on business jet sales and higher volumes in the weapons, sensors and unmanned systems product lines.

Net income for Textron rose 6 percent from the same period last year to $177 million.

Textron also disclosed a $315 million income tax benefit it plans to record in the third quarter from a settlement with the Internal Revenue Service over the company’s 1998-to-2008 tax years.

As of Thursday’s close, shares in Honeywell have climbed 15.7 percent from the start of the year and are up 12.6 percent over 12 months as Textron’s stock has fallen 6.5 percent year-to-date and declined 8.9 percent over 52 weeks.

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