- Honeywell has increased its full-year adjusted EPS forecast to a range of $10.45 to $10.65, from the previous $10.20 to $10.50 range. Analyst estimates were at $10.45.
- The company expects organic sales growth of 4% to 5%, an increase from the previous 2% to 5% range. Estimates were at 3.33%.
- Honeywell sees sales between $40.8 billion to $41.3 billion, up from the prior forecast of $39.6 billion to $40.5 billion. The analyst estimate was $40.4 billion.
- Free cash flow expectations remain unchanged at $5.4 billion to $5.8 billion. Analyst estimate was $5.53 billion.
- For the second quarter, adjusted EPS was reported at $2.75, exceeding both the previous year’s $2.49 and the analyst estimate of $2.66.
- Quarterly sales totaled $10.35 billion, marking an 8.1% year-over-year increase, and surpassed the estimate of $10.07 billion.
- Free cash flow for the quarter was recorded at $1.02 billion, reflecting an 8.6% decrease year-over-year, below the estimate of $1.5 billion.
- Aerospace Technologies revenue reached $4.31 billion, up 11% year-over-year, slightly below the estimate of $4.35 billion.
- Industrial Automation revenue was $2.38 billion, beating the estimate of $2.24 billion.
- Building Automation revenue was $1.83 billion, showing a 16% increase year-over-year, and exceeded the estimate of $1.77 billion.
- Energy and Sustainability Solutions revenue was $1.84 billion, up 15% year-over-year, surpassing the estimate of $1.71 billion.
- Overall organic sales grew by 5%, outperforming the estimate of 2.29%.
- Aerospace Technologies organic sales increased by 6%, though below the estimate of 10.5%.
- Organic sales in Industrial Automation were flat, outperforming the negative 9.48% estimate.
- Building Automation saw organic sales rise by 8%, exceeding the estimate of 3.86%.
- Energy and Sustainability Solutions organic sales went up by 6%, meeting expectations.
- CEO Vimal Kapur highlighted the strong sales growth in Building Automation and mentioned the significant impact of the company’s Accelerator operating system.
- The spinoff of Solstice Advanced Materials is targeted for the fourth quarter.
Honeywell International on Smartkarma
Analysts on Smartkarma are covering Honeywell International closely, with a positive outlook on the company’s recent performance. Baptista Research highlighted Honeywell’s strong start to fiscal 2025, exceeding Wall Street expectations in the first quarter. The company’s decision to raise guidance despite a complex macroeconomic backdrop has been well received, with the announcement of splitting into three independent public entities further boosting investor confidence.
Richard Howe‘s insights shed light on the upcoming spin-offs in 2025, including Honeywell’s plans to separate into three independent companies: aerospace, automation, and advanced materials. This strategic move, influenced by activist investor pressure and market trends, is seen as a significant transformation that could position Honeywell for growth and success in the aerospace and automation industries.
A look at Honeywell International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| 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 has a positive long-term outlook. With a strong momentum score of 4, the company seems to be performing well in the market. Additionally, it has balanced scores in dividend, growth, and resilience, all scoring a 3. This indicates that Honeywell International is stable in terms of growth potential, dividend payouts, and its ability to withstand economic uncertainties. However, the company scores lower in the value factor, with a score of 2, suggesting that the stock may be slightly overvalued at the moment.
Honeywell International Inc. is a leading diversified technology and manufacturing company operating globally. Their wide range of products and services span across aerospace, control technologies, automotive products, specialty chemicals, and energy-efficient solutions. With respectable Smartkarma Smart Scores across the board, Honeywell International appears to be a reliable and robust player in the market, poised for continued growth and stability in the long term.
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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