As aviation demand rises, Honeywell stock gains follow Q1 earnings and profit guidance surge

As aviation demand rises, Honeywell stock gains follow Q1 earnings and profit guidance surge ...

Updated at 10:11 AM EST

Honeywell International Inc. reported a higher-than-expected first quarter earnings on Friday, while narrowing the range of its full-year profit prediction, as the aerospace-focused company hopes to capitalize on the global rebound in air travel and aviation demand.

Honeywell said adjusted earnings for the three months ending in March were valued at $1.91 per share, down one cent from the same period last year, but with a strong front of the Street consensus estimate of $1.86 per share. Group revenues slowed 0.6 percent to $8.4 billion, compared to analysts'' forecasts of an $8.3 billion increase.

Honeywell said it expects revenues of between $35.4 billion and $36.4 billion, organic sales growth of between 4% and 7%, as well as adjusted earnings in the region of $8.50 to $8.80 per share, sluggishing from its previous forecast of $8.40 to $8.70 per share.

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Despite the growing challenges, Honeywell achieved a strong start to 2022, meeting or exceeding expectations in the first quarter, according to CEO Darius Adamczyk. "Our commercial aviation aftermarket, building products, productivity solutions and services, and advanced materials businesses both sustained double-digit growth."

"Demand" remained strong, with orders up 13% year over year and long-cycle orders increasing of over 20%, which will aid growth throughout the year. "We also continued to leverage our robust balance sheet, deploying $2 billion of total capital in the quarter, with $1 billion to share repurchases as we continued to fulfill our promised offer to buy back $4 billion in stock in 2022."

Honeywell''s stock was marked 4.8 percent higher in early Friday trading shortly following the earnings release to change hands at $199.12 each, reducing the stock''s year-to-day decrease to 3.7%.

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