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The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4%.
Let’s see how things have shaped up for Honeywell this earnings season.
Honeywell International Inc. Price and EPS Surprise
Improving supply chains, strength in the cyber, industrial, aerospace and connected building end markets, solid operational execution and solid operational execution are expected to have aided Honeywell’s second-quarter performance. We expect the company’s second-quarter revenues to increase 2.1% from the year-ago reported number. Our estimate for HON’s second-quarter earnings reflects a 4% increase from the year-ago reported figure.
The Aerospace segment is expected to have benefited from strong commercial aftermarket demand owing to a recovery in commercial flight hours. We expect the company’s Aerospace revenues to increase 10% from the year-ago period.
Strength in projects and smart energy businesses is likely to have driven the Performance Materials and Technologies segment’s revenues. We expect segmental revenues to climb approximately 5% from the year-ago reported figure.
Institutional demand in airports, healthcare and education is likely to have buoyed the Building Technologies segment’s performance. We expect segmental revenues to inch up around 3% from second quarter 2022 reported number.
However, lower warehouse and workflow and productivity solutions volumes are likely to have dented the Safety and Productivity Solutions’ sales in the soon-to-be-reported quarter. We expect segmental revenues to decline approximately 15% from the year-ago reported number.
Given Honeywell’s wide international exposure, foreign currency headwinds are likely to have dented its top line. W expect the company’s second-quarter revenues to reflect a muted growth of 2.1% from the year-ago reported number.
Honeywell’s bottom line is expected to reflect the impact of raw material cost inflation and high selling, general and administrative expenses. Pricing actions and cost-control measures are likely to have partly offset this adversity. Our estimate for HON’s second-quarter earnings reflects a 4% increase from the year-ago reported figure.
Earnings Whispers
Our proven model predicts an earnings beat for Honeywell 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 the case here, as elaborated below.
Earnings ESP: Honeywell has an Earnings ESP of +0.85% as the Most Accurate Estimate is pegged at $2.22, higher than the Zacks Consensus Estimate of $2.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Honeywell currently carries a Zacks Rank #2.
Highlights of Q1 Earnings
Honeywell’s first-quarter 2023 earnings of $2.07 per share surpassed the Zacks Consensus Estimate of $1.93. The bottom line improved 8.4% year over year. Total revenues of $8,864 million beat the Zacks Consensus Estimate of $8492.6 million. The top line increased 6% from the year-ago quarter. Organic sales increased 8% due to growth in Honeywell Building Technologies, Performance Materials and Technologies and Aerospace segments.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Emerson pulled off a trailing four-quarter earnings surprise of 4.5%, on average. The stock has gained 5.5% in the past three months.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +3.94% and a Zacks Rank #3. The company is slated to release second-quarter 2023 results on Jul 26.
Allegion delivered a trailing four-quarter earnings surprise of 12.5%, on average. The stock has rallied 17.7% in the past three months.
Image: Bigstock
Can Honeywell (HON) Retain Beat Streak This Earnings Season?
Honeywell International (HON - Free Report) is scheduled to release second-quarter 2023 financial numbers on Jul 27, before market open.
The company has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4%.
Let’s see how things have shaped up for Honeywell this earnings season.
Honeywell International Inc. Price and EPS Surprise
Honeywell International Inc. price-eps-surprise | Honeywell International Inc. Quote
Factors to Note
Improving supply chains, strength in the cyber, industrial, aerospace and connected building end markets, solid operational execution and solid operational execution are expected to have aided Honeywell’s second-quarter performance. We expect the company’s second-quarter revenues to increase 2.1% from the year-ago reported number. Our estimate for HON’s second-quarter earnings reflects a 4% increase from the year-ago reported figure.
The Aerospace segment is expected to have benefited from strong commercial aftermarket demand owing to a recovery in commercial flight hours. We expect the company’s Aerospace revenues to increase 10% from the year-ago period.
Strength in projects and smart energy businesses is likely to have driven the Performance Materials and Technologies segment’s revenues. We expect segmental revenues to climb approximately 5% from the year-ago reported figure.
Institutional demand in airports, healthcare and education is likely to have buoyed the Building Technologies segment’s performance. We expect segmental revenues to inch up around 3% from second quarter 2022 reported number.
However, lower warehouse and workflow and productivity solutions volumes are likely to have dented the Safety and Productivity Solutions’ sales in the soon-to-be-reported quarter. We expect segmental revenues to decline approximately 15% from the year-ago reported number.
Given Honeywell’s wide international exposure, foreign currency headwinds are likely to have dented its top line. W expect the company’s second-quarter revenues to reflect a muted growth of 2.1% from the year-ago reported number.
Honeywell’s bottom line is expected to reflect the impact of raw material cost inflation and high selling, general and administrative expenses. Pricing actions and cost-control measures are likely to have partly offset this adversity. Our estimate for HON’s second-quarter earnings reflects a 4% increase from the year-ago reported figure.
Earnings Whispers
Our proven model predicts an earnings beat for Honeywell 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 the case here, as elaborated below.
Earnings ESP: Honeywell has an Earnings ESP of +0.85% as the Most Accurate Estimate is pegged at $2.22, higher than the Zacks Consensus Estimate of $2.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Honeywell currently carries a Zacks Rank #2.
Highlights of Q1 Earnings
Honeywell’s first-quarter 2023 earnings of $2.07 per share surpassed the Zacks Consensus Estimate of $1.93. The bottom line improved 8.4% year over year. Total revenues of $8,864 million beat the Zacks Consensus Estimate of $8492.6 million. The top line increased 6% from the year-ago quarter. Organic sales increased 8% due to growth in Honeywell Building Technologies, Performance Materials and Technologies and Aerospace segments.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank #2. The company is scheduled to release third-quarter fiscal 2023 (ended Jun 30, 2023) results on Aug 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Emerson pulled off a trailing four-quarter earnings surprise of 4.5%, on average. The stock has gained 5.5% in the past three months.
Allegion plc (ALLE - Free Report) has an Earnings ESP of +3.94% and a Zacks Rank #3. The company is slated to release second-quarter 2023 results on Jul 26.
Allegion delivered a trailing four-quarter earnings surprise of 12.5%, on average. The stock has rallied 17.7% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.