Honeywell Signs Deal With Bombardier to Offer Aviation Technology

Honeywell International Inc. HON recently entered into a collaboration with Bombardier to offer avionics, propulsion and satellite communication technologies for the latter’s existing and future aircraft. HON projects a revenue potential of $17 billion from the strategic partnership over its duration.This partnership is built on HON’s commitment to three global megatrends, which are automation, the future of aviation and energy transition. The deal will involve both companies cooperating on research and development in advanced technologies, including HON’s Anthem avionics and engines.The agreement will see collaboration between both companies to certify and make JetWave X available for Bombardier’s Global and Challenger aircraft for both newly manufactured ones and aftermarket installations. Honeywell will also offer Bombardier its full suite of advanced L-Band satellite communications products and antennas. The latest technologies will enable Bombardier to significantly enhance the safety and efficiency of its aircraft.As noted, Honeywell and Bombardier also resolved all legacy pending litigation between them.Honeywell expects its investments related to the latest deal to have a material impact on its results. It lowered its sales and earnings outlook. For 2024, the company currently expects sales to be in the band of $38.2-$38.4 billion compared with the prior expected range of $38.6-$38.8 billion. Organic sales are expected to increase 2% compared with 3-4% anticipated earlier. It reported sales of $36.7 billion in 2023.Adjusted earnings per share are expected to be between $9.68 and $9.78 compared with the prior guided range of $10.15-$10.25. The metric indicates an increase from $9.16 reported in 2023.For the fourth quarter of 2024, sales are projected to be in the range of $9.8-$10.0 billion compared with the prior expected band of $10.2-$10.4 billion. Organic sales growth is expected to be in the band of (2)-0% against 2-4% expected earlier.It also reduced its adjusted earnings per share to $2.26-$2.36 from the prior guided range of $2.73-$2.83.HON’s Zacks Rank & Price PerformanceHoneywell, with approximately $149.5 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is benefiting from strength in its commercial aviation aftermarket business, driven by solid demand in the air transport and business aviation markets.However, HON has been witnessing weakness in the warehouse and workflow solutions businesses due to lower demand for projects, which has been affecting the Industrial Automation segment's performance.Image Source: Zacks Investment ResearchHON’s shares have gained 11.9% against the industry’s 0.8% decline in the past three months.The Zacks Consensus Estimate for its current-year earnings has improved 0.5% over the last 60 days.Key PicksSome better-ranked stocks from the same space are presented below.Graham Corporation GHM sports a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for its fiscal 2025 earnings has increased 8.4%.Federal Signal Corporation FSS presently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 11.8%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2024 earnings has increased 3.1%.RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. RBC delivered a trailing four-quarter average earnings surprise of 2.5%. In the past 60 days, the Zacks Consensus Estimate for its 2024 earnings has increased 1.3%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report RBC Bearings Incorporated (RBC): Free Stock Analysis Report Federal Signal Corporation (FSS): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks