Honeywell Posts Upbeat Q1 Profit, But Sales Miss Views

reported stronger-than-expected earnings for the first quarter on Friday. However, the company reported downbeat quarterly sales and lowered its sales outlook for the year. The Morris Township, New Jersey-based company posted a quarterly profit of $1.1 billion, or $1.41 per share, versus a year-ago profit of $1 billion, or $1.28 per share. Its revenue slipped to $9.21 billion versus $9.68 billion. However, analysts were expecting earnings of $1.39 per share on revenue of $9.48 billion. Aerospace segment sales slipped 6 percent for the quarter, while sales for Automation and Control Solutions segment fell 3 percent. Performance Materials and Technologies segment sales fell 5 percent year-over-year. Expenses declined 7.5 percent in the quarter. The average estimate among 31 Estimize users was for earnings of $1.40 per share and revenue of $9.59 billion. "Honeywell had a good start to 2015 delivering double-digit earnings growth at the high end of our guidance range and experiencing improving momentum over the course of the quarter," said Honeywell Chairman and CEO Dave Cote. "While we are off to a strong start to 2015, we will continue to plan conservatively as the global economic environment continues to evolve, and in the first quarter we funded additional repositioning, which will continue to improve our cost position." For 2015, the company now expects sales of $39 billion to $39.6 billion, versus earlier forecast of $40.5 billion to $41.1 billion. However, the company lifted the lower end of its earnings forecast to $6 to $6.15 per share, versus $5.95 to $6.15 per share. Honeywell shares fell 0.40 percent to $103.50 in pre-market trading.