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Honeywell Q3 EPS expected to be $1.60

Staff Writer | October 8, 2016
Honeywell has updated its previous guidance for the third quarter of 2016. Q3 EPS is now expected to be approximately $1.60.
Honeywell   Core organic sales are expected to be down 1-2 percent
Excluding restructuring associated with the $0.07 of first-half benefits related to stock compensation adoption, third-quarter EPS is expected to be approximately $1.67, in-line with the prior guidance range.

This guidance also reflects the impact of lower shipments to Business and General Aviation OEMs, continued program delays and completions in the domestic and international businesses within Defense & Space, and lower volumes in Productivity Solutions (part of Safety and Productivity Solutions).

In addition, the company initiated fourth-quarter EPS guidance of $1.74-$1.78, up 10%-13% year-over-year, which excludes any pension mark-to-market (MTM) adjustment and the impact of a potential fourth-quarter debt refinancing that would lower interest expense in 2017 and beyond, but result in a fourth-quarter pre-tax charge of approximately $140 million.

The refinancing transaction is dependent on continued favorable interest rate and credit market conditions.

Full-year EPS guidance, excluding those same items, is updated to $6.60-$6.64, up 8%-9% year-over-year. Core organic sales are now expected to be down 1-2 percent for the full year.