Key Takeaways

• Honeywell International missed third-quarter revenue estimates Thursday as demand for its industrial automation products declined.

• Sales at the Industrial Automation division dipped 5%, but they were higher for all other Honeywell units.

• The company lowered its full-year sales outlook. Its shares also fell Thursday, weighing on the Dow.

Honeywell International (HON) shares declined Thursday after the aviation and safety equipment manufacturer missed sales estimates and lowered its revenue guidance as demand for its industrial automation products slumped.

Honeywell reported third-quarter revenue rose almost 6% year-over-year to $9.73 billion, while analysts surveyed by Visible Alpha were looking for $9.89 billion. Adjusted earnings per share (EPS) of $2.58 exceeded forecasts.

Honeywell's shares were recently off more than 5%, leaving them up just slightly for the year. The move weighed on the blue-chip Dow.

Sales at its Industrial Automation segment declined 5% to $2.50 billion, which the company blamed on "volume softness in warehouse and workflow solutions and safety and sensing technologies."

Sales got a big boost from Honeywell's Aerospace Technology sector, rising 12% to $3.91 billion, led by its defense and space offerings. Sales at its smaller Building Automation and Energy and Sustainability Solutions units were higher by 14% and 1%, respectively.

CEO Says Honeywell 'Executed Through a Challenging Environment'

Chief Executive Officer (CEO) Vimal Kapur said that the company "executed through a challenging environment in the third quarter."

Kapur added that it made significant progress this year "on the simplification and optimization of the Honeywell portfolio," which included the planned spinning off of its Advanced Materials division and the exiting of its personal protective equipment (PPE) business, as well closing on four acquisitions.

The company explained that because of the closings of those purchases, along with third quarter-results and management's outlook for the rest of the year, it was lowering its 2024 sales forecast to a range of $38.6 billion to $3.88 billion from the earlier prediction $39.1 billion to $39.7 billion. It narrowed the range of adjusted EPS to $10.15 to $10.25 from $10.05 to $10.25.

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