- Honeywell (NYSE:HON) +1% premarket after announcing plans to spin off its Homes product portfolio and ADI global distribution business as well as its transportation systems into two stand-alone, publicly traded companies by end of 2018.
- The new Homes and Global Distribution business is envisioned to have annualized revenue of $4.5B with 13K employees, while the new Transportation Systems business is seen having revenue of $3B and 6,500 employees.
- By retaining its aerospace businesses, HON is defying activist Third Point hedge fund’s calls to spin off that division, which accounted for ~36% of the company's total revenue in 2016.
- HON also raises its FY 2017 EPS guidance to $7.05-$7.10 from its previous outlook of $7.00-$7.10 and within analyst consensus of $7.07; for Q3, HON expects EPS of $1.75 vs. $1.74 consensus, on 3% higher revenue of $10.1B vs. $9.9B consensus.
- Now read: Honeywell International Is Great Even At This Price
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