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Honeywell's GoDirect Ground to Boost Swissport's Operations

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Honeywell International Inc. (HON - Free Report) recently entered into a five-year deal with Swissport International — the largest global provider of airport ground and cargo handling services. Per the deal, Swissport will deploy Honeywell’s GoDirect Ground service solution across its global operation base. Notably, the solution was selected following the evaluation of its benefits, based on Honeywell’s demonstration in five of Swissport’s ground handling stations.

Developed in collaboration with Pinnacle, the Honeywell solution will allow Swissport to connect the ramps at airports and create more effective ramp environment. This will improve Swissport’s operational efficiency by providing real-time information about activities of ground-based equipment used at airports.

Leveraging a combination of connectivity and telematics, the connected ramp facilitates transfer of data from airport vehicles, which can be fed into the GoDirect Ground software. With the help of collected data, users can track the use of vehicles apart from changing or improving services to reduce turnaround times, apply effective maintenance processes as well as make improved use of fuel. As a matter of fact, this will lead to a fall in operational costs, enhancement of services, and safety for airports and airlines.

Our Take

Although Honeywell's proactive restructuring initiatives have positioned it to navigate better than many of its peers, it is yet to witness signs of stabilization in few major end markets. For instance, a change in the U.S. government'sdefenseand aerospace funding could adversely impact sales of Aerospace'sdefenseand space-related products.

In the past month, shares of this Zacks Rank #4 (Sell) company have lost 6.6% compared with the industry’s decline of 6.2%.

Also, the company is currently experiencing inflation in a number of areas, especially logistics, transportation and in certain material prices like metals. High research and development costs could also be a drag on the Aerospace segment's profitability going forward.

Stocks to Consider

Some better-ranked stocks in the same space are ITT Inc. (ITT - Free Report) , Federal Signal Corporation (FSS - Free Report) and Crane Company (CR - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ITT surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 5.72%.

Federal Signal outpaced estimates in each of the preceding four quarters, the average earnings surprise being 21.18%.

Crane outpaced estimates in each of the preceding four quarters, the average earnings surprise being 5.04%.

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