Honeywell Appears To Have A Lot To Offer
Stephen Simpson, CFA
Stephen Simpson, CFA
Wed, Sep. 14, 10:19 AM
- Sees modest core organic growth in 2H, further runway for margin expansion and attractive returns from M&A.
- Says approximately $25B of balance sheet capacity remains.
- Reaffirms 3Q16 EPS guidance of $1.67-$1.72 (up 6%-10% Y/Y).
- $15B+ deployed since 2015, including ~$8B in acquisitions.
- Presentation available here
Mon, Sep. 12, 12:17 PM
- Honeywell (HON +0.2%) says it will relocate its home technolgoy division headquarters and open a new $19M global software development center in a pair of moves that will add more than 800 jobs to Atlanta; the home technology division is a $9.4B business within HON.
- The new Georgia operation will serve as a development center for software and technologies for HON's aerospace, home and building technologies, safety and productivity solutions, and performance materials and technologies units.
- HON already has more than 1,000 workers in Georgia in various locations, including a cyber security lab.
Wed, Sep. 7, 4:44 PM
- Honeywell (NYSE:HON) says it will pay a spinoff dividend of AdvanSix common shares on Oct. 1.
- HON shareholders will receive one AdvanSix share for every 25 shares of HON stock owned on a pro-rated basis.
- HON expects when-issued trading on the NYSE in AdvanSix will begin on Sept. 14, with regular-way trading beginning Oct. 3 under the symbol ASIX.
Wed, Aug. 31, 10:43 AM
- The period started with an offer to acquire United Technologies. The stock began to rise after CEO Dave Cote said the talks were over due to potential regulatory problems.
- Announced the acquisition of privately held Intelligrated for $1.5B in July.
- Earnings increased by 10% for the second quarter on flat revenues.
- Arranged for the sale of Honeywell Technology Solutions to KBR in August for $300M, looking to shed non-core units.
- It's also considering the spinoff or sale of its commodities chemical unit, worth more than $1B.
- The company is continuing its plan to evolve into a high-tech industrial company and plans on spending a total of $10B on mergers between now and 2018.
Tue, Aug. 30, 7:25 AM
- Honeywell (NYSE:HON) has completed its $1.5B acquisition of Intelligrated, a privately held company focused on supply chain and warehouse automation solutions.
- The business will be integrated into Honeywell Safety and Productivity Solutions and led by Intelligrated's co-founder Chris Cole, who will report directly to Honeywell CEO John Waldron.
Mon, Aug. 29, 3:41 AM
- New rules by the FAA go into effect today, clarifying what is acceptable commercial usage of small unmanned aerial vehicles.
- Drones must weigh less than 55 pounds, fly up to a maximum of 400 feet in altitude, at a speed of no more than 100 miles per hour and can only be operated during the day.
- According to industry estimates, the rules could generate more than $82B for the U.S. economy and create more than 100K new jobs over the next decade.
- Related stocks: AMBA, AMZN, AVAV, BA, DJI, OTCQX:DRNE, DPZ, HON, INVN, IXYS, GPRO, TRMB
Tue, Aug. 16, 2:12 PM
- Blackstone (BX -0.4%) has offered a financing plan to help JDA Software, giving it an alternative option to selling itself to Honeywell (HON -0.3%), Reuters reports.
- BX reportedly has proposed to JDA a payment-in-kind financing deal whose coupon would be paid with additional securities, and would include equity warrants that would give BX a significant minority stake in the company.
- JDA's majority owner, buyout firm New Mountain Capital, now must decide whether to sell the company outright to HON for ~$3B, or stick with it and seek to speed its turnaround with new capital from BX that would allow JDA to invest in its sales force and products, according to the report.
Tue, Aug. 16, 7:41 AM
- Honeywell (NYSE:HON) and JDA Software weren't talking yesterday about the possibility of the industrial giant buying Scottsdale software company.
- "We don't comment on market rumor or speculation," said Rob Ferris, vice president of external communications and public affairs.
- An earlier report in the WSJ said Honeywell was gearing up to buy JDA for $3B.
Mon, Aug. 15, 6:46 AM
- M&A activity is kicking off the headlines this week with an array of deals expected to be announced shortly.
- Among them: Mid-America Apartment (NYSE:MAA)- Post Properties (NYSE:PPS), Sharp (OTCPK:SHCAY)- Foxconn (OTC:FXCOF), Honeywell (NYSE:HON)- JDA Software, Xylem (NYSE:XYL)- Sensus USA and KKR- Entertainment One (OTC:ENTMF).
- The technology sector is still leading the global M&A market in 2016, but the real estate segment is not far behind.
- Will 2016 outpace 2015's record in terms of acquisitions and deal value?
Mon, Aug. 15, 2:13 AM
- Honeywell's (NYSE:HON) deal for JDA Software, an acquisition that could be valued at around $3B, is expected to be announced as soon as today, WSJ reports.
- The purchase would boost Honeywell's shift into software. CEO David Cote says about half of the company's 23K engineers are now working in the sector, as opposed to the heavy goods like jet engines and building control systems for which it is best known.
Fri, Aug. 12, 9:02 AM
- Engineering and construction firm KBR Inc. (NYSE:KBR) agrees to acquire Honeywell's (NYSE:HON) government services provider for ~$300M.
- KBR says the acquisition expand its government service offerings into higher end technical services that carry increased margins and reduced levels of risk, while HON says the business does not fit with its current portfolio and long-term strategic plans in aerospace.
- Annual estimated revenues for the Honeywell Technology Solutions unit are ~$600M.
Mon, Aug. 8, 7:08 PM
- Honeywell (NYSE:HON) is in talks to acquire JDA Software in a deal that could value the U.S. supply chain management software company at ~$3B, including debt, Reuters reports.
- A deal would illustrate how HON is seeking to boost its automation portfolio after it agreed last month to acquire distribution systems and logistics company Intelligrated for $1.5B.
- JDA Software is struggling with more than $2B in debt, and Moody's earlier this year warned that the company's risk of impairment in its capital structure would be high without a sizable equity infusion or reduction in debt.
Fri, Jul. 29, 10:55 AM
Sat, Jul. 23, 1:08 PM
- 7-Eleven and drone delivery service upstart Flirtey announce that they have completed the first fully autonomous drone delivery to a customer's residence. The pair says the development will help advance research toward integrating drones into the National Airspace System.
- The drone delivery in the Reno area, which marked the first time a U.S. customer has received a package to their home via drone, included Slurpee drinks, a chicken sandwich, donuts, hot coffee, and candy.
- Looking ahead, the two companies have plans to expand drone delivery tests and work closely together, according to a top 7-Eleven exec.
- Drone watch: While there's some speculation on the ways that companies such as Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT), Walgreens Boots Alliance (NASDAQ:WBA), and Domino's Pizza (NYSE:DPZ) could use drone delivery, many industry watchers think emergency conditions (flood/forest fire/earthquake/medical) or niche situations (oil rigs/barrier islands/inaccessible roads) are the most likely scenarios for widespread drone action. Earlier this year, an article in the MIT Technology Review speculated that an intermediary dropping off point out such as the local Starbucks (NASDAQ:SBUX) store could be utilized instead of working out all the problems of home delivery.
- Related (directly and tangentially) stocks: AMBA, AVAV, DJI, OTCQX:DRNE, HON, INVN, IXYS, GPRO, TRMB, FDX, UPS, TGT.
Fri, Jul. 22, 8:21 AM
- Net income of $1.28B, or $1.66 per share vs. $1.19B, or $1.51 per share, in the same quarter a year ago.
- Sales by segment: Aerospace -1%; Automation and Control Solutions +9%; Performance Materials -3%.
- Operating income margin improved by 80 bps to 18.4%.
- Repurchased approximately $500M of shares during the quarter, bringing the company's YTD total to $1.6B.
- Realigned its Automation And Control Solutions business group into two new segments: Home and Building Technologies and Safety and Productivity Solutions.
- The company now expects annual sales of $40B-$40.6B, down from its previous guidance for sales of $40.3B-$40.9B. It also increased the low end of its EPS guidance for the year by $0.05, now expecting between $6.60 to $6.70.
- HON -2.2% premarket
- Q2 results
Fri, Jul. 22, 6:40 AM