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Honeywell beats Q4 earnings estimates, misses on revenue

Yahoo Finance Live anchors discuss fourth-quarter earnings for Honeywell.

Video transcript

JULIE HYMAN: Speaking of industrials, let's talk about Honeywell. The company missed analyst revenue estimates in the fourth quarter, increased commercial aviation sales partially offset by lower defense volumes year over year. Those shares are down by about 3%. So that going more in line with what one would have expected here.

And if you look across their different categories here, aerospace was, indeed, strong. There saw sales rise by about 11%. But if you look at some of their other units, safety and productivity solutions sales down about 8%. So definitely sometimes it helps to be a diversified industrial, and sometimes you get dragged down by some of the segments that underperform.

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BRAD SMITH: Yeah, the CEO had said that late cycle aerospace and energy, particularly those markets, well positioned for a strong growth year in 2023. And then additionally, when you look at some of the full quarter or the fourth quarter and full year 2022, this was just a challenging operating environment for Honeywell.

Given the diversification that they do have, this is a business that would also look to kind of lean into one segment versus another when you did see any type of rattling within one particular segment or try to kind of back in that for another. But their Honeywell building technologies, those sales were up by about 15% on an organic basis for the quarter. So that one of the major callouts that they had pointed to as well.

BRIAN SOZZI: Yeah, this is really an error-- this was really an aviation quarter, as Julie teased right there. The commercial original equipment part of that aviation business up about 25%, then the aftermarket up 20%. And this really fits nicely what we heard from GE when they reported earnings a couple of weeks ago. It was an aviation led quarter from them. Boeing's quarter not that great, but still, a little bit of a comeback quarter from them. And aviation, at least right now, guys, it looks like are doing pretty well, given sluggish growth in Europe, sluggish growth in China, and of course, sluggish growth here in the US.

BRAD SMITH: All right, we're taking a look at shares there on the day. They're down by about 3.25%.