Manufacturer Honeywell International Inc (NYSE: HON) fell short of estimates by analysts in its latest update, as a result cutting their annual targets.
Customers have remained cautious about capital spending following tough economic and political conditions.
Honeywell own a variety of different business, and operate within many different sectors.
The prolonged trade war between the United States and China tied with Britains stance in the EU have contributed to a slump in the third quarter. This has also put downward pressure on business confidence and slow capital spending.
As a result, Honeywell cut the top end of its annual sales forecast to $36.9 billion.
The company also forecast fourth quarter earnings per share between $2 and $2.05, which was marginally below the $2.06 target.
Gordon Haskett analyst John “While the slightly lower fourth-quarter guide versus consensus is likely to be viewed as mildly disappointing – but likely also relatively resilient against the backdrop of the tough economy,”Inch said “Overall, we believe the quarter was generally in-line with expectations (better margin performance and weaker core growth)”
On a more positive note, sales in the aerospace sector surged by 10%. This was a boost for Honeywell, where they provide repair and overhaul services.
Honeywell also make brakes for Boeing Co (NYSE: BA) and Airbus SE (EPA: AIR), henceforth Honeywell can take this forward.
Honeywell International Inc (NYSE: HON) shares are trading at $163.63 seeing a 0.098% fall. 17/11/2019 14:12BST
CEO Darius Adamczyk said “Overall, we had a strong third quarter, which was a continuation of very strong performance year-to-date. We are well positioned in attractive end markets with multiple levers for value creation heading into 2020. We remain committed to delivering outstanding returns for our customers, shareowners, and employees over the long-term.”
Following the news that Honeywell cut their annual targets, the stock price did not fall as drastically.
This may come from renewed hope from traders that the US and China will reach a mutually beneficial trade deal.
