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Investor Alert

Oct. 22, 2021, 6:45 a.m. EDT

Honeywell's stock drops after profit tops expectations but revenue misses amid 'tough' supply chain environment

Shares of Honeywell International Inc. (NAS:HON) slumped 3.4% in premarket trading Friday, after the aerospace and building materials company reported third-quarter profit that topped expectations but revenue that came up short, citing "tough challenges" in the supply chain. Net income rose to $1.27 billion, or $1.80 a share, from $758 million, or $1.07 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose 29% to $2.02, above the FactSet consensus of $1.99. Sales grew 8.7% to $8.47 billion, below the FactSet consensus of $8.66 billion. Among the company's business segments, all saw sales rise from a year ago, but only performance materials and technologies topped expectations, while aerospace, building technologies and safety and productivity solutions were a bit shy. For 2021, the company raised its guidance range for adjusted EPS to $8.00 to $8.10 from $7.95 to $8.10, but cut its revenue guidance to $34.2 billion to $34.6 billion from $34.6 billion to $35.2 billion. The stock has declined 3.5% over the past three months through Thursday, while the S&P 500 (S&P:SPX) has gained 4.2%.

Link to MarketWatch's Slice.