Here's What to Expect From Honeywell International's…

Here's What to Expect From Honeywell International's Next Earnings Report

With a market cap of $129.4 billion, Honeywell International Inc. (HON) is a global technology and manufacturing company with strong operations across aerospace, industrial automation, building automation, and energy and sustainability solutions. It recently formed an Unmanned Aerial Systems unit to expand in the growing UAS and urban air mobility markets. The Charlotte, North Carolina-based company is expected to release its fiscal Q1 2025 earnings results before the market opens on Tuesday, Apr. 29.

Ahead of this event, analysts project the multi-industry conglomerate to report an adjusted EPS of $2.21, a 1.8% decrease from $2.25 in the year-ago quarter. However, the company has exceeded Wall Street's bottom-line estimates in the last four quarters. In Q4 2024, HON beat the consensus adjusted EPS estimate by 6.9%.

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For fiscal 2025, analysts forecast HON to report adjusted EPS of $10.30, up 4.2% from $9.89 in fiscal 2024. Moreover, adjusted EPS is expected to grow 8.3% year-over-year to $11.15 in fiscal 2026.

Over the past 52 weeks, Honeywell has declined 1.2%, underperforming the broader S&P 500 Index's ($SPX) 2.1% rise and the Industrial Select Sector SPDR Fund's (XLI) marginal dip over the same period.

Despite beating Q4 2024 estimates with an adjusted EPS of $2.47 and revenue of $10.1 billion, Honeywell shares fell 5.6% on Feb. 6 because investors were concerned about the 8.2% year-over-year decline in EPS and a 27% drop in free cash flow. Margin pressures, especially a 780 basis point contraction in aerospace and softness in industrial automation, raised worries. Additionally, Honeywell’s 2025 guidance for sales of $39.6 billion - $40.6 billion and adjusted EPS of $10.10 - $10.50 implied only modest 2% - 5% organic growth.

Analysts' consensus view on Honeywell International stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, 11 suggest a "Strong Buy" and 11 give a "Hold." This configuration is slightly more bullish than three months ago, with 10 analysts suggesting a "Strong Buy."

As of writing, HON is trading below the average analyst price target of $239.85.

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