Honeywell Aerospace Drops 2.73% After Hours; Q3 Results Beat Estimates, Guidance Raised

Honeywell Aerospace's shares drew attention on Thursday.

The Arizona-based aerospace and defense company's stock fell 2.73% to $172.19 in after-hours trading on Wednesday, following a 5.44% gain to close at $177.03 in the regular session.

The company reported third-quarter results, its first earnings report as a standalone publicly traded company since its spinoff on June 29.

Quarterly revenue came in at $4.64 billion, surpassing the analyst consensus of $4.59 billion by 1.18%.

Earnings per share were $2.21, beating expectations of $1.90 by 16.3%.

Guidance Raised, Initiation of Dividend Bolsters Outlook

Sales rose 2% year-over-year, while net income grew 13% to $737 million.

Backlog increased 12% to $19.3 billion. Orders over the trailing twelve months grew 9%, driven primarily by the defense and space segment.

CEO Jim Currier said results "exceeded our expectations." He noted that a few mechanical suppliers are still limiting production growth.

The company raised its full-year pro-forma adjusted EPS guidance from $7.60-$7.90 to $7.85-$8.00. Second-half free cash flow guidance was lifted from $1.0-$1.4 billion to $1.2-$1.4 billion.

The board also declared an initial quarterly dividend of $0.40 per share, payable on December 4 to shareholders of record on November 13.

$500 Million Tempe Facility

Separately, Honeywell Aerospace announced a $500 million investment in Tempe, Arizona, to build a 300,000-square-foot manufacturing facility, with production slated to begin by the end of 2028.

The facility will add internal complex machining capabilities, which the company identified as a constrained area within its supply base. It will also bring production of the Assure actuation system and Attune vapor cycle cooling subsystems in-house through vertical integration.

Trading Metrics and Technical Analysis

Honeywell Aerospace has a market capitalization of $56.11 billion, with a 52-week high of $266.62 and a 52-week low of $149.19.

HONA's relative strength index stands at 66.41.

The stock is down 11.49% over the past twelve months.

Price action: In the regular session, shares rose 5.44% to close at $177.03.