Honeywell stock gains toward a record after profit and sales beats, raised full-year outlook

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Shares of Honeywell International Inc. HON, -1.14% gained 0.1% toward record territory in premarket trading Friday, after the aerospace and industrials company reported second-quarter profit and sales that beat expectations and raised the full-year outlook, citing a turnaround in several end markets hit hardest by the pandemic. Net income rose to $1.45 billion, or $2.04 a share, from $1.10 billion, or $1.53 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.02 beat the FactSet consensus of $1.94. Sales grew 17.8% to $8.81 billion, above the FactSet consensus of $8.64 billion. All business segments saw growth, while slight misses in aerospace and safety and productivity solutions sales were offset by beats in building technologies and performance materials and technologies. For 2021, the company raised its guidance ranges for adjusted EPS to $7.95 to $8.10 from $7.75 to $8.00 and for sales to $34.6 billion to $35.2 billion from $34.0 billion to $34.8 billion. "We are especially pleased to see a turnaround in several of our key end markets that were hardest hit by the pandemic, with commercial aerospace aftermarket and the UOP business returning to growth in the quarter," said Chief Executive Darius Adamczyk. The stock, which was on track to open above the June 1 record close of $232.95, has gained 9.4% year to date through Thursday while the Dow Jones Industrial Average DJIA, +0.52% has advanced 13.8%.

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