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Business & education services

Honeywell slumps after lowering guidance

Shares were off 8.2% at US$106.14 on Friday afternoon.

Technology conglomerate Honeywell International Inc (NYSE:HON) disappointed the market with lowered guidance on Thursday.

Shares of the US$81bn-valued company were among the worst performing blue-chips on Friday after the company said it now expects third quarter earnings per share (EPS) to be US$1.67, at the bottom end of its guidance range of US$1.67 to US$1.72.

The median forecast for analysts following the stock was US$1.70.

For the final quarter of the year the company forecast EPS would be in the range of US$1.74 to US$1.78, which had analysts scurrying to revise their estimates as the median forecast was US$1.80.

Full-year EPS is expected to be somewhere between US$6.60 and US$6.64, below the consensus estimate of US$6.67.

The group blamed ongoing restructuring on the guidance downgrade.

The company, which recently bought Intelligrated for US$1.5bn, said might try to refinance some of its debt in the fourth quarter with the aim of bringing down interest charges.

Shares were off 8.2% at US$106.14 on Friday afternoon.

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