Shares of Honeywell slid Thursday as strong second-quarter results are being overshadowed by a mixed update to management's outlook for the remainder of the year. But we're looking through the weakness on a belief that the industrial conglomerate is heading toward a healthy 2025. Revenue for the three months ended June 30 totaled $9.58 billion, topping Wall Street expectations of $9.41 billion, according to estimates compiled by LSEG.
of $2.49 advanced roughly 8% compared with the year-ago period, ahead of the $2.42 consensus forecast, LSEG data showed. It also came in above the high end of management's guidance. Segment margin, similar to an adjusted operating income margin, expanded about half a percentage point on an annual basis to 23%, slightly below expectations but in line with management's previously forecasted range.
Honeywell Why we own it: Honeywell is a provider of industrial technology solutions to companies in various industries. We appreciate its exposure to the aerospace industry as a parts supplier. The portfolio has, however, become a bit bloated. We think further upside will come as the company divests non-core businesses and focuses both internal investments and acquisition efforts around management's three targeted mega-trends: automation, the future of aviation, and the energy transition.
