Honeywell Reports Strong Q4 Results Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: seekingalpha
- Sales Growth Highlight: Honeywell's Q4 sales rose 6% year-over-year to $9.76 billion, with adjusted sales at $10.07 billion exceeding Wall Street's $9.92 billion forecast, driven by strong demand in aerospace and building automation.
- Profitability Under Pressure: Although adjusted EPS reached $2.59, surpassing the $2.54 estimate, net income plummeted 71% to $309 million due to one-time impairment charges, reflecting challenges during the company's transformation.
- Significant Order Growth: Orders surged 23% year-over-year, pushing backlog over $37 billion, indicating robust market demand and future growth potential, particularly in the aerospace sector.
- Optimistic 2026 Outlook: Honeywell forecasts 2026 sales between $38.8 billion and $39.8 billion, with adjusted EPS expected to grow 6% to 9%, demonstrating the company's confidence in future performance and commitment to ongoing investments.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
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.
Continue Reading
Software Stocks Plunge as Tesla Reports Revenue Decline
- ServiceNow's Disappointing Results: Despite ServiceNow reporting a fourth-quarter EPS of $11.09, which exceeded expectations, its stock plummeted 11% as Morgan Stanley expressed concerns that growth prospects were insufficient to alleviate investor fears regarding AI competition.
- Widespread Software Stock Decline: Following ServiceNow's results, other software stocks like Atlassian and Salesforce fell 12% and 7% respectively, indicating strong market apprehension about AI disrupting traditional business models, leading the sector into a bear market.
- Tesla's First Revenue Decline: Tesla's stock dropped over 2% after announcing its first annual revenue decline and plans to halt production of Model S and X, shifting focus to developing Optimus robots and autonomous vehicles, highlighting the urgency of its strategic pivot.
- Royal Caribbean's Stock Surge: Royal Caribbean guided for first-quarter adjusted earnings between $3.18 and $3.28 per share, surpassing analyst expectations of $2.91, resulting in a 15% stock increase and also boosting shares of rival cruise lines.
Continue Reading