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Honeywell (HON) to Report Q1 Earnings: Will it Disappoint?
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Honeywell International Inc. (HON - Free Report) is scheduled to report first-quarter 2020 results on May 1, before the opening bell.
The company delivered a positive earnings surprise of 2.59%, on average, in the trailing four quarters, beating estimates on all occasions. Notably, Honeywell’s fourth-quarter 2019 adjusted earnings of $2.06 per share surpassed the Zacks Consensus Estimate of $2.04 by 0.98%.
In the past six months, shares of the company have lost 18.2% compared with the industry’s 12.6% decline.
Key Factors to Note
Weakness in Honeywell’s Safety and Productivity Solutions segment on account of persistent issues in the productivity products business is likely to have affected its performance in the first quarter. Notably, weakness in the company’s productivity products business, owing to lower volumes of sales due to inventory destocking and lower channel sell-through, is expected to get reflected in the company’s top-line numbers. In addition, soft demand in the retail business is expected to have affected its safety business’ performance.
Also, the impacts of the coronavirus outbreak on the demand for the company’s products and services along with the governmental regulations imposed in response to the crisis are anticipated to get reflected in Honeywell’s first-quarter results.
Moreover, forex woes adversely impacted the company’s sales in 2019 by 1%, a trend which is likely to have continued in the to-be-reported quarter as well, given its strong operational presence globally. In addition, due to the persistent weakness in global industrial production, supply chain inefficiencies are likely to have affected its top-line performance in the first quarter.
However, Honeywell’s efforts on maximizing commercial and operational excellence are likely to have boosted margins and its financial performance in the first quarter.
Notably, the Zacks Consensus Estimate for first-quarter revenues of the company's Aerospace segment is pegged at $3,264 million, indicating a decline of 2.3% from the year-ago reported number. The consensus mark for the Safety and Productivity Solutions segment’s revenues stands at $1,479 million, implying a 6.5% year-over-year decrease. Moreover, the consensus estimate for Honeywell Building Technologies segments’ first-quarter revenues is pegged at $1,351 million, suggesting a decrease of 2.7% from the year-ago reported figure. The consensus mark for the Performance Materials and Technologies segment’s revenues is pegged at $2,546 million, implying a decrease of 1% year over year.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
But that is not the case here as we will see below.
Earnings ESP: Honeywell has an Earnings ESP of -2.16% as the Most Accurate Estimate is pegged at $1.93, lower than the Zacks Consensus Estimate of $1.98.
Honeywell International Inc. Price and EPS Surprise
Axon Enterprise, Inc. currently has an Earnings ESP of +2.13% and a Zacks Rank #3.
Ball Corporation presently has an Earnings ESP of +1.56% and a Zacks Rank of 3.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Honeywell (HON) to Report Q1 Earnings: Will it Disappoint?
Honeywell International Inc. (HON - Free Report) is scheduled to report first-quarter 2020 results on May 1, before the opening bell.
The company delivered a positive earnings surprise of 2.59%, on average, in the trailing four quarters, beating estimates on all occasions. Notably, Honeywell’s fourth-quarter 2019 adjusted earnings of $2.06 per share surpassed the Zacks Consensus Estimate of $2.04 by 0.98%.
In the past six months, shares of the company have lost 18.2% compared with the industry’s 12.6% decline.
Key Factors to Note
Weakness in Honeywell’s Safety and Productivity Solutions segment on account of persistent issues in the productivity products business is likely to have affected its performance in the first quarter. Notably, weakness in the company’s productivity products business, owing to lower volumes of sales due to inventory destocking and lower channel sell-through, is expected to get reflected in the company’s top-line numbers. In addition, soft demand in the retail business is expected to have affected its safety business’ performance.
Also, the impacts of the coronavirus outbreak on the demand for the company’s products and services along with the governmental regulations imposed in response to the crisis are anticipated to get reflected in Honeywell’s first-quarter results.
Moreover, forex woes adversely impacted the company’s sales in 2019 by 1%, a trend which is likely to have continued in the to-be-reported quarter as well, given its strong operational presence globally. In addition, due to the persistent weakness in global industrial production, supply chain inefficiencies are likely to have affected its top-line performance in the first quarter.
However, Honeywell’s efforts on maximizing commercial and operational excellence are likely to have boosted margins and its financial performance in the first quarter.
Notably, the Zacks Consensus Estimate for first-quarter revenues of the company's Aerospace segment is pegged at $3,264 million, indicating a decline of 2.3% from the year-ago reported number. The consensus mark for the Safety and Productivity Solutions segment’s revenues stands at $1,479 million, implying a 6.5% year-over-year decrease. Moreover, the consensus estimate for Honeywell Building Technologies segments’ first-quarter revenues is pegged at $1,351 million, suggesting a decrease of 2.7% from the year-ago reported figure. The consensus mark for the Performance Materials and Technologies segment’s revenues is pegged at $2,546 million, implying a decrease of 1% year over year.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
But that is not the case here as we will see below.
Earnings ESP: Honeywell has an Earnings ESP of -2.16% as the Most Accurate Estimate is pegged at $1.93, lower than the Zacks Consensus Estimate of $1.98.
Honeywell International Inc. Price and EPS Surprise
Honeywell International Inc. price-eps-surprise | Honeywell International Inc. Quote
Zacks Rank: The company carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies you may want to consider as our model shows that these have the right mix of elements to beat estimates this time around:
Intellicheck, Inc. (IDN - Free Report) has an Earnings ESP of +66.67% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Axon Enterprise, Inc. currently has an Earnings ESP of +2.13% and a Zacks Rank #3.
Ball Corporation presently has an Earnings ESP of +1.56% and a Zacks Rank of 3.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>