Honeywell Q2 Profit Beats Estimates, Lifts FY16 EPS View; Splits Business

(RTTNews) - Honeywell International Inc. (HON) reported second net income of $1.282 billion, up from $1.194 billion last year. Earnings per share increased to $1.66 from $1.51 in the prior year.

On average 18 analysts polled by Thomson Reuters expected the company to earn $1.64 per share. Analysts estimates usually exclude special items.

Net sales for the second quarter was $9.991 billion, up from $9.775 billion in the previous year. Wall Street expected $10.13 billion.

Looking ahead to the full year 2016, the company raised its earnings range of $6.60 to $6.70 per share, while its previous guidance was $6.55 to $6.70 per share. The company currently expects earnings per share growth of 8 to 10 percent from the prior year.

Sales guidance for the full year 2016 is cut to $40 to $40.6 billion, from its previous projection of $40.3 to $40.9 billion, expecting 4 to 5 percent growth. For the full year analysts are looking for $40.64 billion.

Further, the company announced the split of Automation and Control Solutions business into Home and Building technologies or HBT and Safety and Productivity Solutions or SPS. According to Honeywell, the separation is expected to enable increased efficiency and speed of decision-making as well as a more comprehensive integrated suite of technologies.

HBT will be led by Terrence Hahn and SPS will be led by John Waldron. Alex Ismail, who served as president and CEO of Automation and Control Solutions will leave the company.