Earnings Preview: Honeywell International

Apr.22.10 | About: Honeywell International, (HON)

Honeywell International (NYSE:HON) is expected to report Q1 earnings before the market open on Friday, April 23 with a conference call scheduled for 8:00 am ET.


Analysts are looking for EPS of 47c on revenue of $7.58B. The consensus range is 44c-50c for EPS and $7.33B-$7.91B for revenue, according to First Call. The company reported mixed Q4 results, beating EPS but missing revenue estimates. On its conference call, CEO Dave Cote noted that the company had strong momentum heading into 2010 as improving order trends and stabilization in many end markets were encouraging. Recent sentiment in the stock has been positive. On March 30, Honeywell raised its EPS guidance to 45c-49c from prior 40c-45c on the heels of stronger than expected sales in several markets. It also forecast FY10 EPS at the high end of its prior guidance of $2.20-$2.40.

Analyst Views

On March 24, Oppenheimer raised its target price to $50 from $45 on the belief that the company’s sales guidance for Q1 may be conservative. On February 22, the company said it sees significant sales, EPS and cash flow growth over the next five years. The stock has rallied on the news, moving from $37 in early February to a recent 52-week high of $46.53 on April 15. Investors will determine how much of the good news has been discounted when Honeywell reports on Friday morning.