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With a market cap of $134.8 billion, Honeywell International Inc. (HON) is a global technology and manufacturing leader, operating across aerospace, building technologies, performance materials, and safety solutions. It serves various industries with advanced products and services, including aerospace systems, industrial automation, and energy management. The Charlotte, North Carolina-based company is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 24.
Ahead of the upcoming event, analysts forecast the industrial conglomerate to report a profit of $2.52 per share, up 11% from $2.27 per share in the previous year's quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, the company exceeded the consensus estimate by a margin of 2.9%.
For fiscal 2024, analysts expect HON to report EPS of $10.10, up 10.3% from $9.16 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 10.6% year-over-year to $11.17.
HON stock increased 14% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 33.4% rise and the Industrial Select Sector SPDR Fund’s (XLI) 33.2% returns over the same period.
Despite reporting better-than-expected Q2 revenue of $9.6 billion and adjusted EPS of $2.49, Honeywell stock dropped 5.2% on Jul. 25 after the company lowered its full-year earnings guidance. Management revised its adjusted earnings per share forecast down to $10.05-$10.25, citing slower-than-expected growth in its more profitable short-cycle businesses. However, the stock rose 1.8% on Oct. 8 after the company announced plans to spin off its advanced materials business into an independent, publicly traded entity by late 2025. This move is part of Honeywell's broader strategy to streamline operations and focus on key growth areas like automation, aviation, and energy transition.
Analysts' consensus rating on Honeywell stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 20 analysts covering the stock, opinions include 12 "Strong Buys" and eight "Holds." This configuration is more bullish than three months ago, with 10 analysts suggesting a "Strong Buy." The average analyst price target for HON is $227.21, suggesting a potential upside of just 6.8% from current levels.
On the date of publication, Sohini Mondal 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.
