Honeywell Shares Drop as Company Lowers Outlook

1 hr 42 min ago

Honeywell International (HON) shares declined Thursday morning 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.

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."

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 said 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. 

Honeywell shares were down 4.5% in recent trading and were the second-biggest decliner in the Dow.

–Bill McColl

IBM Stock Sinks on Disappointing Revenue

3 hr 23 min ago

IBM (IBM) shares were down nearly 6% early Thursday and were the biggest Dow decliner after the company reported quarterly revenue that fell short of Wall Street estimates.

The company late Thursday reported third-quarter revenue of $14.97 billion, up 1% year-over-year and 2% in constant-currency terms but lower than the $15.07 billion consensus estimate of analysts polled by Visible Alpha. Infrastructure revenue fell 7% and consulting revenue remained flat.

IBM posted a net loss of $330 million, or $0.36 per share, due to a $2.7 billion pension-settlement charge. Analysts expected a profit of $1.72 billion, or $1.84 per share.

IBM Chief Executive Officer (CEO) Arvind Krishna said the group expects fourth-quarter revenue growth, in constant-currency terms, to be “consistent” with the third quarter, driven by strong software sales. Krishna said the firm’s “AI book of business now stands at more than $3 billion, up more than $1 billion quarter to quarter.”

Even after falling early Thursday, IBM shares are up nearly 35% this year.

–Nisha Gopalan

UPS Shares Surge as Shipping Giant Returns to Growth

4 hr 37 min ago

United Parcel Service (UPS) shares jumped in premarket trading as the company reported third-quarter results that came in above analysts’ expectations.

The shipping giant reported revenue of $22.2 billion, better than the $21.94 billion consensus estimate of analysts compiled by Visible Alpha. Net income came in at $1.54 billion, or $1.80 per share, above projections, which called for $1.36 billion and $1.59 per share.

Thursday’s results mark the first time in nearly two years that UPS returned to posting year-over-year revenue and profit gains, after it and shipping rival FedEx (FDX) each reported declines following peaks in shipping demand during the pandemic.

UPS shares were up 9% at $143, trading at their highest level in three months.

–Aaron McDade

Futures Tied to Major Indexes Mixed

5 hr 52 min ago

Futures tied to the Dow Jones Industrial Average were down 0.2%.

S&P 500 futures were up 0.5%.

Nasdaq 100 futures were up 0.9%.

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