Honeywell Q3 EPS expected to be $1.60Staff 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
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. ■