Honeywell sees Q2 EPS $1.75-$1.80, consensus $1.75
Says seeing "momentum" in oil and gas sector, large smart meter project roll outs. Seeing "resilient" commercial aviation aftermarket. Says industrial activity improving, but business jet deliveries still weak. For Q2, sees total sales down 1%-3%, or flat to up 2% on an organic basis. Sees total company segment margin up 50-80 bps for Q2 and an effective tax rate of about 25%. For Q2, sees Aero sales down 5%-7%, or down 2% to flat organic; HBT sales down 1% to up 1%, or up 2%-4% organic; PMT sales down 10%-12%, or up 3%-5% organic; SPS sales up 26%-28%, or flat to up 2% organic. Sees Q2 Aero segment margin up 70-100bps, HBT segment margin up 70-100bps, PMT segment margin up 170-200bps, SPS segment margin up 30-60bps. Sees Q2 EPS of $1.75-$1.80, up 7%-10% y/y ex-divestitures. Consensus is $1.75. Sees FY17 Aero segment sales $14B-$14.4B, HBT sales $10.8B-$11B, PMT sales $8.4B-$8.6B, SPS sales $5.4B-$5.5B. Sees FY17 Aero margin 20.9%-21.3%, HBT margin 17.2%-17.6%, PMT margin 23.5%-23.9%, SPS margin 15.6%-16%. Says "well positioned" for remainder of 2017. Comments from slides that will be presented on the Q1 earnings conference call. Honeywell is up 1.6% in pre-market trading following the release of its Q1 earnings report.