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Charlotte, North Carolina-based Honeywell International Inc. (HON) specializes in aerospace technologies, building automation, energy solutions, and industrial automation. With a market cap of $139.9 billion, Honeywell operates across the Americas, Europe, and Asia-Pacific regions, driving innovation and sustainability in diverse sectors. It is expected to announce its second-quarter earnings before the market opens on Thursday, July 25.
Ahead of the event, analysts expect Honeywell to report a profit of $2.40 per share, up 7.6% from $2.23 per share reported in the year-ago quarter. The company beat or matched Wall Street’s EPS projections in each of the past four quarters. Its EPS for the last reported quarter increased by 8.7% annually to $2.25 and exceeded the consensus estimates by 3.2%.
Looking ahead to fiscal 2024, analysts expect Honeywell to report an EPS of $10.20, up 11.4% from $9.16 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 9.7% annually to $11.19.
HON stock has edged up 2.5% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 17.1% gains and the S&P 500 Industrial Sector SPDR’s (XLI) 8.3% returns during the same time frame.
Honeywell’s stock fell marginally after the release of its Q1 results on April 25. The company reported a 2.7% revenue growth and a 5% growth in net earnings. It has shown robust financial resilience, particularly in the Aerospace Technologies segment sales, which reported a 17.9% growth. However, investors are jittery as the Industrial Automation segment sales, which is the second biggest contributor of revenue, saw a drop of 11.6%.
Shares of Honeywell surged 2% after announcing its $1.81 billion acquisition of Air Products' LNG process technology and equipment business on Wednesday, July 10. This strategic move enhances Honeywell's energy transition capabilities, offering end-to-end solutions globally. The deal, valued at approximately 13 times the estimated 2024 EBITDA of the acquired business, is expected to boost Honeywell's adjusted EPS in the first year post-acquisition, pending regulatory approvals, and is slated to close by year-end.
The consensus opinion on Honeywell stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 15 analysts covering the stock, nine recommend a “Strong Buy,” and the remaining six analysts suggest a “Hold” rating.
The average target price for Honeywell is $228.13, indicating a potential upside of 6.2% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
