Honeywell Lowers FY2025 EPS Guidance to $9.70-$9.80 Amid Business Unit Discontinuation
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Guidance Reduction: Honeywell confirmed the discontinuation of its Advanced Materials business unit and lowered its FY2025 adjusted EPS guidance from $10.60-$10.70 to $9.70-$9.80, reflecting significant market challenges and pressure on profitability.
- Sales Forecast Cut: The company also reduced its sales guidance from $40.70 billion-$40.90 billion to $37.50 billion-$37.70 billion, indicating a cautious outlook on future market demand, which may impact investor confidence.
- Stock Price Reaction: In pre-market trading, Honeywell's shares fell 2.1% to $195.00, reflecting market concerns about the company's outlook and potentially increasing selling pressure among investors in the short term.
- Industry Impact: The discontinuation of this business unit and the guidance reduction may negatively affect Honeywell's market position in the materials sector, forcing the company to reassess its strategic direction to cope with intensifying competition.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HON is 235.07 USD with a low forecast of 195.00 USD and a high forecast of 262.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 216.640
Low
195.00
Averages
235.07
High
262.00
Current: 216.640
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Honeywell to Announce Q4 Earnings on January 29
- Earnings Announcement: Honeywell is set to release its Q4 2023 earnings report on January 29 before market open, with consensus EPS estimate at $2.54, reflecting a 2.8% year-over-year increase, showcasing the company's ongoing profitability.
- Revenue Expectations: The revenue estimate stands at $9.9 billion, indicating a 2.0% year-over-year decline, which highlights the challenges the company faces in the current economic climate and may affect investor confidence in future growth.
- Historical Performance: Over the past two years, Honeywell has exceeded EPS estimates 100% of the time and revenue estimates 75% of the time, demonstrating strong performance in managing profitability.
- Estimate Revisions: In the last three months, there have been no upward revisions for EPS or revenue estimates, with both experiencing nine downward revisions, suggesting a cautious market outlook on the company's future performance.
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