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Honeywell (HON) Gears Up to Post Q2 Earnings: What to Expect
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Honeywell International Inc. (HON - Free Report) is scheduled to release second-quarter 2024 results on Jul 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $9.4 billion, which indicates growth of 2.8% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pinned at $2.40 per share, which has increased 3.5% in the past 60 days. The figure indicates a jump of 7.6% from the prior-year quarter figure. The company’s bottom line beat the consensus estimate in the last reported quarter. It has a trailing four-quarter earnings surprise of 1.7%, on average.
Let’s see how things have shaped up for Honeywell this earnings season.
Key Factors and Estimates for Q2
Strength across Honeywell’s commercial aviation aftermarket business, driven by solid demand in the air transport and business aviation markets, is likely to have supplemented the top-line performance of its Aerospace Technologies segment in the second quarter. Also, strength in the company’s commercial aviation original equipment business, backed by an improvement in build rates, is likely to have boosted the segment’s performance. Solid momentum in the defense and space business, owing to stable U.S. and international defense spend volumes, is expected to have been a tailwind as well. We expect the segment’s revenues to increase 14.6% year over year to $3.8 billion.
The Energy and Sustainability Solutions segment is expected to witness a year-over-year increase in revenues, driven by higher orders for its products and solutions within the advanced materials and UOP businesses. Our estimate for the segment’s revenues is pegged at $1.6 billion, indicating a year-over-year increase of 0.6%.
Acquisitions made by HON are likely to have impacted its top line positively. In August 2023, it acquired SCADAfence, which expanded its OT cybersecurity portfolio in Tel Aviv, Israel, while simultaneously fortifying its existing capabilities in cybersecurity, thereby offering customers enhanced security, reliability and efficiency. Also, in June 2023, the company completed the acquisition of Compressor Controls Corporation, which fortified HON’s expertise in industrial control, automation and process solutions while simultaneously bolstering its sustainability portfolio with new carbon capture control solutions.
Honeywell’s commercial and operational excellence initiatives, along with its pricing actions, is likely to have helped it maintain a healthy margin performance. In addition, its three transformation initiatives —Connected Enterprise, Integrated Supply Chain and Honeywell Digital — are expected to have driven profitability.
We expect the company’s total revenues to be $9.4 million for the second quarter, indicating an increase of 2.6% year over year. Adjusted earnings are expected to be $2.35 per share, indicating a 5.2% increase from the year-ago quarter’s reported number.
However, Honeywell’s Industrial Automation segment is expected to have put up a weak show due to the low-demand environment across its warehouse and workflow solutions, and productivity solutions and services businesses. We expect the segment’s revenues to be $2.5 billion, indicating a decline of 9% year over year.
The company has been witnessing escalating costs of sales, which are likely to weigh on its bottom-line results. We expect costs to be $5.8 billion for the second quarter, indicating an increase of 2.8% year over year.
HON has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Honeywell International Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for HON this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Honeywell has an Earnings ESP of -0.38% as the Most Accurate Estimate is pegged at $2.39 per share, which is lower than the Zacks Consensus Estimate of $2.40. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Honeywell presently carries a Zacks Rank of 2.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
The company is slated to release second-quarter 2024 results on Aug 1. ITT’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank of 2. The company is slated to release second-quarter results on Jul 29.
Crane Company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.2%.
3M Company (MMM - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 3, at present. The company is scheduled to release second-quarter results on Jul 26.
3M’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 16.4%.
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Honeywell (HON) Gears Up to Post Q2 Earnings: What to Expect
Honeywell International Inc. (HON - Free Report) is scheduled to release second-quarter 2024 results on Jul 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $9.4 billion, which indicates growth of 2.8% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pinned at $2.40 per share, which has increased 3.5% in the past 60 days. The figure indicates a jump of 7.6% from the prior-year quarter figure. The company’s bottom line beat the consensus estimate in the last reported quarter. It has a trailing four-quarter earnings surprise of 1.7%, on average.
Let’s see how things have shaped up for Honeywell this earnings season.
Key Factors and Estimates for Q2
Strength across Honeywell’s commercial aviation aftermarket business, driven by solid demand in the air transport and business aviation markets, is likely to have supplemented the top-line performance of its Aerospace Technologies segment in the second quarter. Also, strength in the company’s commercial aviation original equipment business, backed by an improvement in build rates, is likely to have boosted the segment’s performance. Solid momentum in the defense and space business, owing to stable U.S. and international defense spend volumes, is expected to have been a tailwind as well. We expect the segment’s revenues to increase 14.6% year over year to $3.8 billion.
The Energy and Sustainability Solutions segment is expected to witness a year-over-year increase in revenues, driven by higher orders for its products and solutions within the advanced materials and UOP businesses. Our estimate for the segment’s revenues is pegged at $1.6 billion, indicating a year-over-year increase of 0.6%.
Acquisitions made by HON are likely to have impacted its top line positively. In August 2023, it acquired SCADAfence, which expanded its OT cybersecurity portfolio in Tel Aviv, Israel, while simultaneously fortifying its existing capabilities in cybersecurity, thereby offering customers enhanced security, reliability and efficiency. Also, in June 2023, the company completed the acquisition of Compressor Controls Corporation, which fortified HON’s expertise in industrial control, automation and process solutions while simultaneously bolstering its sustainability portfolio with new carbon capture control solutions.
Honeywell’s commercial and operational excellence initiatives, along with its pricing actions, is likely to have helped it maintain a healthy margin performance. In addition, its three transformation initiatives —Connected Enterprise, Integrated Supply Chain and Honeywell Digital — are expected to have driven profitability.
We expect the company’s total revenues to be $9.4 million for the second quarter, indicating an increase of 2.6% year over year. Adjusted earnings are expected to be $2.35 per share, indicating a 5.2% increase from the year-ago quarter’s reported number.
However, Honeywell’s Industrial Automation segment is expected to have put up a weak show due to the low-demand environment across its warehouse and workflow solutions, and productivity solutions and services businesses. We expect the segment’s revenues to be $2.5 billion, indicating a decline of 9% year over year.
The company has been witnessing escalating costs of sales, which are likely to weigh on its bottom-line results. We expect costs to be $5.8 billion for the second quarter, indicating an increase of 2.8% year over year.
HON has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Honeywell International Inc. Price and EPS Surprise
Honeywell International Inc. price-eps-surprise | Honeywell International Inc. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for HON this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Honeywell has an Earnings ESP of -0.38% as the Most Accurate Estimate is pegged at $2.39 per share, which is lower than the Zacks Consensus Estimate of $2.40. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Honeywell presently carries a Zacks Rank of 2.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
ITT Inc. (ITT - Free Report) has an Earnings ESP of +3.43% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to release second-quarter 2024 results on Aug 1. ITT’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.
Crane Company (CR - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank of 2. The company is slated to release second-quarter results on Jul 29.
Crane Company’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.2%.
3M Company (MMM - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 3, at present. The company is scheduled to release second-quarter results on Jul 26.
3M’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 16.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.