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Honeywell (HON) Launches JetWave Solution for Defense Sector

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Honeywell International Inc. (HON - Free Report) recently announced a new offering for its innovative JetWave product suite of broadband satcom solutions. Notably, the company’s latest JetWave MCX solution is developed for governmental and military aircraft.

The company’s shares declined 1% yesterday to eventually close the trading session at $230.74.

Inside the Headlines

Honeywell's JetWave satellite communications system allows business jet operators to offer high-speed, reliable, inflight connectivity service to passengers. Built on the advanced in-flight Wi-Fi capabilities of its commercial counterpart, the company’s new JetWave MCX solution will offer better situational alertness, apart from secure communications and the connecting capability to several Ka-band satellite communication networks for humanitarian, combat and surveillance missions.

As noted, the company’s JetWave MCX terminal, which is customized for the defense sector’s critical requirements, has been made available worldwide. It’s worth mentioning that, at present, the JetWave MCX provides technology to the advanced Airborne Mission Networking (AbMN) secure communications suite of Sierra Nevada Corporation.

The company remains focused on investing in product innovation and growth opportunities across its businesses. In May 2021, it introduced a cloud-based solution, Honeywell Forge Real Estate Operations, for building owners and managers. The solution helps in streamlining and combining operational and business data to better support the decision-making process and boost operational efficiencies. Also, in April 2021, it launched its gas cloud imaging system in Europe. Notably, it offers automated and incessant monitoring for leaks of hazardous gases across chemical, oil and gas as well as power generation facilities.

Zacks Rank, Price Performance and Estimates Trend

Honeywell, with a $160.3-billion market capitalization, currently carries a Zacks Rank #3 (Hold). Strength in the company’s defense and space business, supported by stable U.S. government defense budgets, is likely to act as a tailwind in the quarters ahead. For 2021, it anticipates organic growth in the defense and space business to be flat to up in low-single digits. Also, signs of recovery in business aviation aftermarket bode well. However, weakness across the commercial aerospace end market might adversely impact its near-term performance.

In the past three months, the company’s shares have gained 11.4% compared with the industry’s growth of 10.7%.

Zacks Investment ResearchImage Source: Zacks Investment Research

In the past 30 days, the Zacks Consensus Estimate for the company’s earnings has moved up 0.1% to $8.00 for 2021, while the same for 2022 has been raised 0.2% to $9.08.

Key Picks

Some better-ranked stocks from the same space are Griffon Corporation (GFF - Free Report) , ITT Inc. (ITT - Free Report) and Macquarie Infrastructure Company (MIC - Free Report) . While Griffon currently sports a Zacks Rank #1 (Strong Buy), ITT and Macquarie carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Griffon delivered an earnings surprise of 50.00% in the last reported quarter.

ITT delivered an earnings surprise of 21.84% in the last reported quarter.

Macquarie delivered an earnings surprise of 25.00% in the last reported quarter.

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