- Reduced Earnings Forecast: Honeywell has lowered its full-year adjusted earnings per share (EPS) forecast to a range of $9.68 to $9.78, down from the previous range of $10.15 to $10.25. The market estimate was $10.17.
- Sales Projections: The company now expects sales to be between $38.2 billion and $38.4 billion, which is a decrease from a prior forecast of $38.6 billion to $38.8 billion. The market had estimated sales at $38.65 billion.
- Free Cash Flow Expectations: Free cash flow is anticipated to fall within the range of $4.6 billion to $4.9 billion, compared to the previous estimate of $5.1 billion to $5.4 billion. The market expected $5.32 billion.
- Fourth Quarter Outlook: Honeywell projects its fourth-quarter adjusted EPS to be between $2.26 and $2.36, lower than the market estimate of $2.77. Sales during the quarter are expected to be $9.8 billion to $10.0 billion, below the estimated $10.25 billion.
- Organic Sales Performance: The outlook for organic sales growth has been adjusted to +2%, down from an earlier expectation of +3% to +4% for the year. For the fourth quarter, organic sales are expected to range from a decline of 2% to no growth.
- Strategic Collaboration with Bombardier: Honeywell and Bombardier will collaborate on developing Honeywell avionics focused on adaptability, situational awareness, and safety. This partnership includes propulsion enhancements centered around Honeywell’s HTF7K engine.
- Projected Partnership Value: Honeywell estimates that the collaboration with Bombardier could be worth $17 billion over its duration.
- Market Reaction: Following the announcement, Honeywell’s shares declined by 2.3% in post-market trading, with the stock priced at $224.59 after 2,377 shares changed hands.
- Stock Analyst Recommendations: Among analysts, there are 12 buy recommendations, 13 holds, and 1 sell.
Honeywell International on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring Honeywell International Inc., a company making strategic moves to bolster its core businesses like automation, aviation, and energy transition. In a recent report titled “Honeywell International Inc.: Will Their Acquisition of Air Products’ LNG Business & Geographical Expansion Be A Game Changer? – Major Drivers,” Baptista Research examines how Honeywell’s recent operational excellence and M&A activities could impact its stock price. Despite sales missing expectations, Honeywell’s strong operational performance and senior leadership changes are key focal points for the analysts.
Another report by Baptista Research, “Honeywell International: Portfolio Optimization & Acquisitions With An Emphasis on Long-Cycle Business Growth! – Major Drivers,” delves into Honeywell’s mixed performance in the second quarter of 2024. The company managed to exceed EPS guidance and achieve robust organic sales growth, particularly in the aerospace sector. Analysts are optimistic about Honeywell’s focus on long-term business growth through strategic acquisitions and portfolio optimization strategies as highlighted in the report. These insights provide investors with valuable perspectives on Honeywell’s current and future financial outlook.
A look at Honeywell International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
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 appears to have a promising long-term outlook. With a strong momentum score of 4, the company is showing positive momentum in the market. This suggests that investors are increasingly interested in the company’s stock, potentially driving its value up in the future. Additionally, the company’s dividend and growth scores of 3 indicate a decent level of stability and potential for future growth. These factors combined could make Honeywell International an attractive investment option for those seeking steady returns.
Honeywell International Inc. is a diverse technology and manufacturing company with a global presence. Operating in various sectors including aerospace, control technologies, automotive products, and specialty chemicals, the company offers a wide range of products and services. Its focus on energy-efficient solutions and advanced materials positions it well for future growth potential. With overall moderate scores in value and resilience, Honeywell International demonstrates a balanced approach to financial performance and stability, making it a company to watch in the coming years.
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.
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