- Revenue Forecast: Honeywell now expects annual sales to be between $39.1 billion to $39.7 billion. The previous forecast was $38.5 billion to $39.3 billion.
- Adjusted EPS: The forecast for adjusted earnings per share (EPS) has been revised to $10.05-$10.25 from the previous $10.15-$10.45.
- Organic Sales Growth: Expected organic sales growth is now 5% to 6%, up from the earlier 4% to 6% estimate.
- Free Cash Flow: The updated range for free cash flow is $5.5 billion to $5.9 billion, compared to the prior forecast of $5.6 billion to $6.0 billion.
- Second Quarter Results:
- Adjusted EPS: $2.49
- Sales: $9.58 billion, up 4.7% year-over-year, beating the estimate of $9.42 billion.
- Organic Sales: +4%, surpassing the estimate of +1.95%.
- Free Cash Flow: $1.11 billion, a 1.3% decline year-over-year, missing the estimate of $1.2 billion.
- Sector Performance:
- Aerospace Technologies
- Revenue: $3.89 billion, beating the estimate of $3.76 billion
- Organic Sales: +16%, exceeding the estimate of +12.6%
- Industrial Automation
- Revenue: $2.51 billion, in line with the estimate
- Organic Sales: -8%, slightly missing the estimate of -7.85%
- Building Automation
- Revenue: $1.57 billion, narrowly beating the estimate of $1.56 billion
- Organic Sales: +1%, falling short of the estimate of +1.53%
- Energy and Sustainability Solutions
- Revenue: $1.60 billion, topping the estimate of $1.59 billion
- Organic Sales: +3%, underperforming the estimate of +4.4%
Honeywell International on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely covering Honeywell International Inc. and providing insights into the company’s growth prospects. In a recent report titled “Honeywell International: Will Their Improved Performance In Energy and Sustainability Solutions (ESS) Expected To Propel Their Growth? – Major Drivers,” Baptista Research highlights Honeywell’s consistent growth in the first quarter of 2024, exceeding adjusted earnings per share guidance and organic sales targets. The report emphasizes Honeywell’s robust execution of the Accelerator operating system and diversified technology portfolio, leading to significant performance gains across various business segments.
In another report by Baptista Research, titled “Honeywell International – Heavy Investment in Aerospace & Other Futuristic Strategies Propelling Them Forward! – Major Drivers,” analysts discuss Honeywell’s successful fourth quarter 2023 earnings amidst a dynamic business environment. The report notes that Honeywell’s heavy investments in aerospace and other futuristic strategies have propelled the company forward, allowing it to meet full-year guidance for organic growth, adjusted earnings per share, and free cash flow. Additionally, the report highlights leadership changes within the company, with Vimal Kapur being elected to serve as Chairman starting in June following the retirement of the current Executive Chairman, Darius Adamczyk.
A look at Honeywell International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Honeywell International shows a promising long-term outlook. With a strong score in Growth and Momentum, the company is positioned well for future expansion and market performance. Additionally, a decent score in Dividend indicates a consistent payout to investors. However, lower scores in Value and Resilience suggest areas that may need attention to improve overall performance. As a diversified technology and manufacturing company with a focus on aerospace, security technologies, automotive products, and more, Honeywell International‘s strategic positioning in various sectors bodes well for its long-term success.
In summary, Honeywell International Inc. is a diversified technology and manufacturing company with a global presence. Specializing in a wide range of products and services such as aerospace technologies, automotive products, and energy-efficient solutions, the company has a solid foundation for growth and innovation. The Smartkarma Smart Scores reflect strengths in Growth and Momentum, indicating a positive outlook for Honeywell International‘s future market performance.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
