Honeywell Technologies, now operating independently, reported strong second-quarter results on Thursday. With the separation from Honeywell Aerospace finished, investors can now look at each company’s fundamentals separately.
The company reported adjusted earnings of $1.95 per share, not counting the aerospace business, with sales reaching $5.2 billion. This marks a 4% increase from last year. Analysts had expected $1.82 per share on $5 billion in sales.
Sales in building automation grew by 9%, while industrial automation sales were up 4%. Process automation sales fell by 1%. Orders rose 16%, which was faster than sales growth.
The company increased its earnings forecast by ten cents and now expects earnings per share of about $8.20 on sales of around $19.9 billion. Wall Street is currently predicting $8.28 per share on $20.2 billion in sales, but analysts are still updating their estimates after the Honeywell Aerospace spinoff on June 29.
Shares of Honeywell Technologies went up 5.9% in early trading, doing better than the overall market, which was down.
These results have mixed effects for Honeywell Aerospace. Since the two companies were together for most of the quarter, the Technologies earnings report includes results for both. Without the automation segment, Honeywell Aerospace had about $4.5 billion in sales and $1.1 billion in operating profit.
Honeywell Aerospace will report its own earnings on August 5. The final numbers may change a bit, but early signs are fairly positive. Wall Street expects second-quarter sales of $4.6 billion and operating profit of $1.1 billion for the aerospace unit. Shares of Honeywell Aerospace dipped slightly in early trading. Even if sales are a little lower, investors will be paying close attention to any updates about the spinoff transition.
