Honeywell International Inc. (HON - Free Report) yesterday announced that it acquired Boulder City, NV-based technology firm Rocky Research. The financial terms of the transaction have not been disclosed.
It is worth noting here that Honeywell’s share price increased 2.8% yesterday, ending the trading session at $171.55.
Inside the Headlines
Rocky Research is a privately held company, focusing on providing solutions related to energy, thermal and power management. Its customer base includes the U.S. Department of Defense and Homeland Security.
With the buyout, Rocky Research will be a wholly-owned subsidiary of Honeywell, while its headquarters at Boulder City will be used by Honeywell as a research and development facility. Also, its facility in Huntsville, AL, will serve as an integration and testing center for the acquirer.
The solutions provided by Rocky Research as well as its expertise in research and development will enhance growth scopes for Honeywell’s existing offerings in the energy storage, power and thermal management, and power generation arenas. In all, the buyout will assist Honeywell to deliver a complete range of products and services — including prototyping, demonstration, product delivery, support and others — to its customers.
It is worth noting here that Rocky Research will be part of Honeywell’s Aerospace segment. The division engages in providing integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space, and airport operations. The segment’s revenues in second-quarter 2020 were $2,543 million, representing 34% of total revenues generated by Honeywell.
Honeywell’s Buyout Activities
The company believes in acquiring businesses to improve its product lines and market exposure. Apart from Rocky Research, the company did not make any other acquisitions so far in 2020.
However, the company invested $50 million for acquisitions in 2019. It added Rebellion Photonics to its portfolio in December, while acquired TruTrak Flight Systems in July. Since the buyout, Rebellion Photonics has been augmenting its portfolio of automation, process technologies and gas detection solutions. TruTrak Flight Systems enhanced the value of Honeywell’s aviation business.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $117.1 billion, Honeywell currently carries a Zacks Rank #4 (Sell). The company’s businesses, especially commercial original equipment, commercial aftermarket and performance materials, are severely impacted by downturns caused by the pandemic. However, strength in defense and safety as well as Intelligrated businesses is a boon.
In the past three months, the company’s shares have gained 21.3% compared with the industry’s growth of 14.2%.
Meanwhile, the Zacks Consensus Estimate for its earnings has been decreased by 2% to $1.48 for the third quarter of 2020 and by 0.3% to $6.90 for 2020 in the past 60 days. However, the consensus estimate for 2021 has been stable at $7.70 during the same timeframe.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Honeywell International Inc. (HON - Free Report) yesterday announced that it acquired Boulder City, NV-based technology firm Rocky Research. The financial terms of the transaction have not been disclosed.
It is worth noting here that Honeywell’s share price increased 2.8% yesterday, ending the trading session at $171.55.
Inside the Headlines
Rocky Research is a privately held company, focusing on providing solutions related to energy, thermal and power management. Its customer base includes the U.S. Department of Defense and Homeland Security.
With the buyout, Rocky Research will be a wholly-owned subsidiary of Honeywell, while its headquarters at Boulder City will be used by Honeywell as a research and development facility. Also, its facility in Huntsville, AL, will serve as an integration and testing center for the acquirer.
The solutions provided by Rocky Research as well as its expertise in research and development will enhance growth scopes for Honeywell’s existing offerings in the energy storage, power and thermal management, and power generation arenas. In all, the buyout will assist Honeywell to deliver a complete range of products and services — including prototyping, demonstration, product delivery, support and others — to its customers.
It is worth noting here that Rocky Research will be part of Honeywell’s Aerospace segment. The division engages in providing integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space, and airport operations. The segment’s revenues in second-quarter 2020 were $2,543 million, representing 34% of total revenues generated by Honeywell.
Honeywell’s Buyout Activities
The company believes in acquiring businesses to improve its product lines and market exposure. Apart from Rocky Research, the company did not make any other acquisitions so far in 2020.
However, the company invested $50 million for acquisitions in 2019. It added Rebellion Photonics to its portfolio in December, while acquired TruTrak Flight Systems in July. Since the buyout, Rebellion Photonics has been augmenting its portfolio of automation, process technologies and gas detection solutions. TruTrak Flight Systems enhanced the value of Honeywell’s aviation business.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $117.1 billion, Honeywell currently carries a Zacks Rank #4 (Sell). The company’s businesses, especially commercial original equipment, commercial aftermarket and performance materials, are severely impacted by downturns caused by the pandemic. However, strength in defense and safety as well as Intelligrated businesses is a boon.
In the past three months, the company’s shares have gained 21.3% compared with the industry’s growth of 14.2%.
Meanwhile, the Zacks Consensus Estimate for its earnings has been decreased by 2% to $1.48 for the third quarter of 2020 and by 0.3% to $6.90 for 2020 in the past 60 days. However, the consensus estimate for 2021 has been stable at $7.70 during the same timeframe.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on HON - FREE
Get the latest research report on IEP - FREE