06:33 AM EST, 12/03/2024 (MT Newswires) -- Honeywell International ( HON ) lowered its fourth-quarter and full-year outlook as the industrial conglomerate agreed to provide aviation-related technology to Canadian aircraft manufacturer Bombardier, sending its shares down early Tuesday.

The strategic agreement between the two companies includes joint research and development focused on Honeywell ( HON ) avionics, engine selection and satellite communications technologies for Bombardier's current and future aircraft. Honeywell ( HON ) estimates revenue potential of up to $17 billion over the duration of the partnership, it said in a late Monday statement.

"Working together, we will generate significant value for Bombardier's operator base by providing the latest technologies to enable safe and efficient flight," Honeywell Aerospace Technologies' chief executive, Jim Currier, said in the statement. "We are committed to investing in these key technologies with Bombardier, which will not only drive substantial growth for Honeywell ( HON ), but lead the industry further into the future of aviation."

As a result of the investments required for the deal, Honeywell ( HON ) now anticipates adjusted earnings to be in a range of $9.68 to $9.78 for 2024, down from its prior guidance of $10.15 to $10.25. Sales are pegged at $38.2 billion to $38.4 billion, compared with previous projections for $38.6 billion to $38.8 billion. The current consensus on FactSet is for non-GAAP EPS of $10.09 and revenue of $38.57 billion.

Honeywell's ( HON ) stock declined 1.7% in Tuesday's premarket activity.

For the fourth quarter, the company expects adjusted EPS between $2.26 and $2.36 versus the prior forecast of $2.73 to $2.83. Sales are seen at $9.8 billion to $10 billion, down from the previous estimate of $10.2 billion to $10.4 billion. The Street is looking for non-GAAP EPS of $2.67 and revenue of $10.15 billion.

"While the commercial agreement impacts near-term Honeywell ( HON ) financials, the company is confident it will lead to long-term value creation for Honeywell ( HON ) shareowners," Honeywell ( HON ) said.

Additionally, Honeywell ( HON ) and Bombardier said all pending litigation between the companies has been settled. Bombardier initially filed a lawsuit against Honeywell ( HON ) in a Canadian court in 2016. The company reportedly alleged Honeywell ( HON ) of selling propulsion systems to its rivals on more favorable terms.