Honeywell (-2.45% to $224.30) fell after yesterday's announcement of the downward revision of its financial forecasts for the year 2024. The American group lowered its objectives by taking into account investments linked to an agreement with Bombardier, world leader in aviation and manufacturer of business jets. This is a strategic agreement that concerns the supply of cutting-edge technologies for current and future Bombardier aircraft in the areas of avionics, propulsion and satellite communications technologies.
A company specializing in the manufacturing and marketing of industrial equipment, Honeywell estimates the value of this partnership at $17 billion over the duration of this agreement, also confirming that “all ongoing disputes between the two companies have been resolved”.
Honeywell and Bombardier will collaborate on the development of Honeywell avionics. Additionally, the collaboration's propulsion-based workstreams will focus on developments in power, reliability and maintainability, led by Honeywell's next-generation HTF7K engine.
Regarding its annual targets, its adjusted earnings per share of Honeywell should be between $9.68 and $9.78 compared to between $10.15 and $10.25.
Its revenue is now expected to be between $38.2 billion and $38.4 billion compared to a previous range of between $38.6 billion and $38.8 billion.
Free cash flow is expected between $4.6 and $4.9 billion versus previously between $5.1 and $5.4 billion.
Operating cash flow is expected to be between $5.8 billion and $6.1 billion versus $6.2 billion to $6.5 billion.
