Earnings Preview: Honeywell

Honeywell International (HON) is expected to report Q3 earnings Friday morning with a conference call scheduled for 8:00 am ET.

Guidance

Analysts are looking for EPS of 95c on revenue of $9.6B. The consensus range is 93c to 97c for EPS, and $9.47B to $9.68B for revenue, according to First Call. Honeywell raised its FY08 EPS and revenue guidance when it reported its Q2 earnings results. The company raised its FY08 EPS guidance to $3.75 to $3.85 vs. consensus of $3.81, and raises FY08 revenue guidance to $37.6B to $38.2B vs. consensus of $37.94B.

Honeywell also stated it expects double digit earnings growth in the second half of the year. The company reported strong results in Q2, beating analysts' estimates on EPS and revenue.

Analyst Views

Sterne Agee upgraded Honeywell to Buy from Hold, following the company's Q2 results given prospects for an accelerated restructuring due to the pre-tax gain on sale of Aero Aftermarket Consumables business. The firm has a $62 target on shares.

Gabelli maintained its Buy rating for the company, after Honeywell reported Q2 EPS that beat its guidance. The firm believes Honeywell is a good play on the necessity of air safety equipment, and products for improving refining, increasing fuel economy, and lowering vehicle emissions.