Honeywell: Aero & Defense inching to consistent growth - Oppenheimer
Oppenheimer notes strong margin performance across the segments and modest rev upside supported EPS upside, consistent with recent trends. Aerospace should show decent acceleration in growth for 3Q (D&S up, AM stronger), but 4Q likely positions for negative organic growth, given D&S headwind from licensing settlements in 4Q13 ($63M) and tough ATR OE comparisons (4Q13 up 14%), partially offset by easy BGA OE comparisons. At PMT, UOP also faces a tough 4Q comparison and projects down 8-10% in the final frame, but annualized growth trend remains strong (2Q14 had record orders and backlog). With strengthening trends at Advanced Materials and Process Solutions, overall PMT backlog was up 9% y-o-y; $110 tgt.