Honeywell Stock Slides On Q4 Revenue Miss, 2023 Earnings Outlook
"Late-cycle aerospace and energy end markets are positioned for a strong growth year in 2023," said CEO Darius Adamczyk.
"Late-cycle aerospace and energy end markets are positioned for a strong growth year in 2023," said CEO Darius Adamczyk.
Updated at 7:07 am EST
Honeywell International (HON) - Get Free Report posted modestly better-than-expected fourth quarter earnings Thursday, while revenues were light of Street forecasts, but noted that aerospace and energy markets are poised for solid gains in the coming year.
Honeywell said adjusted earnings for the three months ending in December were pegged at $2.52 per share, up 23% from the same period last year and narrowly ahead of the Street consensus forecast of $2.51 per share. Group revenues edged 6.2% higher to $9.2 billion, compared to analysts' forecasts of an $9.26 billion tally.
Looking into the current financial year, Honeywell said it sees adjusted earnings was between $8.80 and $9.20 per share, well shy of the Refinitiv forecast of $9.17 per share, with revenues rising to between $36.0 billion to $37.0 billion.
"As we have consistently shown over the past three years, Honeywell's operating principles enable us to outperform in any macroeconomic environment," said CEO Darius Adamczyk. "As we look toward 2023, we are well-positioned to remain resilient and deliver differentiated results. Our backlog remains at a record level, ending 2022 at $29.6 billion, and will help support growth throughout the year."
"Late-cycle aerospace and energy end markets are positioned for a strong growth year in 2023, we are demonstrating commercial progress in digital offerings through our Forge platform, and we remain focused on growing our sustainability initiatives such as renewable fuels, carbon capture, and sustainable buildings," he added. "I am confident that 2023 will be another strong performance for our shareowners, our customers, and our employees."
Honeywell shares were marked 4.9% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $197.74 each.
Last week, Honeywell rival General Electric GE forecast weaker full-year profits as its energy business continues to drag on the industrial group's bottom line.
Operating profits for GE Aerospace, its core division, were forecast in the range of $5.3 billion to $5.7 billion while GE Vernova, the energy business it plans to spin-off in 2024, will likely report a loss of between $200 million and $600 million.
General Electric posted adjusted earnings of $1.24 for the quarter, with revenues rising 7.4% from last year to $21.8 billion.
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