Yahoo Finance Honeywell Becomes Global Reseller of Inmarsat's GX Aviation
Honeywell International Inc.’s HON Aerospace business arm recently set foot in the airlines cabin services market as a premium reseller of in-flight broadband service offered by Inmarsat PLC’s GX Aviation. The move is expected to augment popularity of Honeywell's GoDirect Connected Aircraft offerings across the globe. However, the company stated that it will uphold the status of being the sole provider of GoDirect software and services, as well as its non-imitable JetWave hardware in the market.
In sync with the aforementioned deal, Inmarsat and Honeywell will provide joint efforts to service the existing and new customers in the global satellite communications space.
Of late, the global aviation industry has been trying to enhance the quality of on-board connectivity for both passengers and aircraft systems. So far, Inmarsat and Honeywell have provided state-of-the-art in-flight internet solutions to the business jet and airliners across the globe. These reliable Wi-Fi services ensure that the pilots are equipped with up-to-the-minute weather information and also facilitate on-broad streaming at speeds up to 50 megabytes per second.
Honeywell stated that the deal will also strengthen the portfolio of its connectivity service offerings across the aviation market. Moreover, the move aligns with the company’s commercial success within the business jet sector.
Our Take
Honeywell tries to provide state-of-the-art services and products in the market for ensuring its competitive strength in the global aviation industry. However, we notice, the company is plagued with inflationary headwinds across its entire supply-chain process. Rising transportation expenses, material prices and logistic outlays might continue to escalate costs and in turn, dent Honeywell’s profitability in the quarters ahead. Also, on a P/E (TTM) basis, this Zacks Rank #4 (Sell) stock looks overvalued compared to its industry with the respective tally of 18.6x and 17.7x for the past month.
Over the past month, Honeywell’s shares have lost 7.5% compared to the 8.7% decline recorded by the industry it belongs to.
Stocks to Consider
Some better-ranked stocks in the same space are listed below:
Macquarie Infrastructure Company MIC currently sports a Zacks Rank #1 (Strong Buy). The company has pulled off a positive average earnings surprise of 3.85% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
Crane Company CR holds a Zacks Rank #2 (Buy). The company has generated a positive average earnings surprise of 5.04% in the trailing four quarters.
ITT Inc. ITT also carries a Zacks Rank of 2. The company delivered a positive average earnings surprise of 5.72% during the same time frame.
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