Honeywell Shares Edge Lower On Mixed Q3 Results, FY21 Sales Outlook Cut - Honeywell Intl (NASDAQ:HON)

Honeywell International Inc HON reported third-quarter sales growth of 9% year-over-year to $8.47 billion, +8% on an organic basis, missing the consensus of $8.65 billion.
Adjusted EPS improved to $2.02 compared to $1.56 in 3Q20, beating the consensus of $1.99.
Aerospace sales increased 3%Y/Y to $2.73 billion, and segment margin expanded by 390 bps to 27.1%.
Honeywell Building Technologies sales increased by 5% Y/Y to $1.37 billion, and segment margin expanded by 190 bps to 23.5%.
Performance Materials and Technologies sales increased by 11% Y/Y to $2.51 billion, and segment margin expanded by 260 bps to 22.2%.
Safety and Productivity Solutions sales increased by 18% Y/Y to $1.86 billion, and segment margin contracted by 70 bps to 13.2%.
Segment margin expanded by 130 bps to 21.2%, and operating margin improved by 180 bps to 18.6%.
Honeywell generated $1.12 billion in operating cash flow, compared to $1.01 billion a year ago. Free cash flow was $911 million.
The company's orders were up high single digits, up double digits ex-COVID mask demand. Backlog improved 7% to $27.5 billion.
Honeywell updated its full-year guidance to reflect the persistent effects of the macro-challenged environment.
FY21 Outlook: Honeywell expects sales of $34.2 billion - $34.6 billion (prior expectation $34.6 billion - $35.2 billion) vs. consensus of $35.1 billion, with organic growth of 4% - 5% (prior 4% - 6%). It expects segment margin of 20.9% - 21.1% (prior 20.8% - 21.1%).
Honeywell sees adjusted EPS of $8.00 - $8.10 (prior view $7.95 - $8.10) vs. the consensus of $8.07.
Price Action: HON shares are trading lower by 1.61% at $220.9 during the premarket session on Friday.

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