Earnings Preview: Honeywell International

Jan.28.10 | About: Honeywell International, (HON)

Honeywell International (NYSE:HON) is expected to report Q4 earnings before the market open on Friday, January 29 with a conference call scheduled for 8:00 am ET.


Analysts are looking for EPS of 90c on revenue of $8.15B. The consensus range is 83c-93c for EPS, and $8.07B-$8.28B for revenue, according to First Call. The company reported mixed Q3 results, beating EPS but missing revenue estimates.

Analyst Views

On December 15, it was downgraded to Underweight from Neutral at HSBC. On December 16, Honeywell issued weak EPS guidance for FY10, noting that EPS would only exceed estimates if non-cash pension expenses were excluded. Revenue estimates for FY10 were largely in-line with consensus. FY10 organic sales growth was fore casted at 1%-3%. CEO Dave Cote noted that he was seeing stabilization in a number of the company’s end markets which would likely translate into modest improvements in order trends heading into the new year. This was a welcome surprise as Cote had mentioned back in July that he was not planning for any recovery in FY09. The stock has had a decent run since releasing Q3 numbers, climbing from the mid-30’s to a recent 52-week high of $43.21. The company generates more than 50% of its sales from overseas markets. As the recovery accelerates, this may prove beneficial as Asia and Europe have been growing significantly faster than the U.S.