Honeywell raises Q1 profit view, shares rise

CALIFORNIA: Diversified U.S. manufacturer Honeywell raised its first-quarter profit outlook helped by stronger orders and sales in several short cycle end markets, sending its shares up 3 percent.

The company now expects first-quarter profit of 45 cents to 49 cents to share, up from its prior view of 40 cents to 45 cents a share.

Analysts were expecting 44 cents a share, excluding items, according to Thomson Reuters I/B/E/S.

Honeywell also said it expects full-year earnings to be near the high-end of its outlook range of $2.20 to 2.40 a share.

"We continue to see signs of recovery throughout our portfolio and are encouraged by improving customer order trends in the first quarter," CEO Dave Cote said in a statement.

The company also lowered its estimate on charges to be incurred from the recently passed U.S. healthcare reform to about $13 million.

In January, it said the healthcare reform would hurt its first-quarter earnings by 4 cents to 5 cents a share.

Honeywell's shares rose to $46.20 after the bell on Tuesday. They closed at $45.95 earlier.