Honeywell (HON) opened higher this morning but tapered off in late-morning trade with the market. The company reported first-quarter EPS of $2.25, vs. $2.07 last year, which was $0.08 above expectations. Revenues were up 3%, led once again by strength in aerospace, which saw an 18% increase in revenues.

Energy and Sustainability Solutions revenues were flat, while both the Industrial Automation and Building Automation segments reported lower revenues again. However, management noted there were pockets of recovery in these businesses, and this recovery should broaden throughout the year.

EPS guidance for the year was maintained at $9.80 to $10.10. However, with the non-aerospace businesses improving, I believe the market will gain more confidence that HON will come in at the high end of these numbers for the year. HON is a buy below $200. My target is $220.