Investin.com — Honeywell International Inc (NASDAQ:) cut its annual guidance on Monday after the jet engine maker struck an investment-heavy partnership with Bombardier aircraft that is expected to keep a lid on its bottom line.
Honeywell International Inc (NASDAQ:) fell 3% in afterhours following the news.
Under the collaboration, Honeywell said ti would provide “advanced technology for current and future Bombardier (OTC:) aircraft in avionics, propulsion and satellite communications technologies.”
The agreement is expected to dent adjusted earnings per share by $0.47 and sales by $0.4 billion, the company said as it lowered guidance for Q4 and FY 2024.
The company said it now sees Q4 adjusted earnings per share in a range of $2.26 of $2.36, down from a prior forecast for adjusted EPS of $2.73 to $2.83. Sales for Q4 were cut to a range of $9.8B to $10.0B from $10.2B to $10.4B.
For the full-year, adjusted EPS was expected in a range of $9.68 to $9.78, down from a prior forecast of $10.15 to $10.25. Sales guidance for Q4 was cut to a range of $38.2B to $38.4B from $38.6B to $38.8B.
“While the commercial agreement impacts near-term Honeywell financials, the company is confident it will lead to long-term value creation for Honeywell shareowners,” Honeywell said.
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