Honeywell International Inc (NASDAQ:HON) stock fell 0.33% (As on February 2, 11:16:11 AM UTC-4, Source: Google Finance) after the company announced a mixed set of fourth quarter results. The organic sales growth is of 2%, led by another quarter of double-digit organic sales growth in commercial aviation. Operating margin contracted 290 basis points to 16.8% and segment margin expanded by 60 basis points to 23.5%, driven by expansion in Performance Materials and Technologies and Aerospace. Operating cash flow was $3.0 billion with operating cash flow margin of 31.3%, and free cash flow was $2.6 billion with free cash flow margin of 27.4%, led by a reduction in working capital.

Moreover, Aerospace sales for the fourth quarter were up 15% on an organic basis year over year_, the sixth consecutive quarter of double-digit organic growth, as a result of ongoing strength in both commercial aviation and defense and space. Sales growth was led by commercial original equipment, increasing 25% year over year on increased shipset deliveries. Commercial aftermarket once again grew double digits in the fourth quarter as flight hours continue to improve, including 29% growth in air transport. Defense and space sales were up 5%. Honeywell Building Technologies sales for the fourth quarter were down 1% on an organic basis year over year. Performance Materials and Technologies sales for the fourth quarter were up 4% on an organic1 basis year over year. Advanced Materials led PMT with 6% organic sales growth, driven by double-digit growth in fluorine products and strength in life sciences. Safety and Productivity Solutions sales for the fourth quarter decreased by 24% on an organic basis year over year. Softness in the short-cycle productivity solutions and services business also impacted sales, but orders growth of over 30% in the quarter provided signs of improvement.

HON in the fourth quarter of FY 23 has reported the adjusted earnings per share of $2.60, which is inline with the analysts’ estimates for the adjusted earnings per share of $2.60. The company had reported the adjusted revenue growth of 3 percent to $9.4 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $9.7 billion.

Looking ahead, Honeywell forecasts a FY EPS ranging from $9.80 to $10.10 in line with the consensus $9.96. The company projects its revenue for FY2024 to be between $38.1 billion and $38.9 billion, which is somewhat lower than the market consensus of $39.01 billion.