Honeywell Appears To Have A Lot To Offer
Stephen Simpson, CFA
Stephen Simpson, CFA
Mar. 20, 2015, 7:05 AM
Mar. 6, 2015, 5:34 PM
- Honeywell (NYSE:HON) has more cash than nearly all of its peers and may be warming to big acquisitions, as its head of M&A says the company could tally $10B in acquisitions by the end of 2018, possibly in “one shot.”
- HON typically has hesitated from making big deals, but with the balance sheet containing a record $9.1B cash, "they've got to do something,” says RBC analyst Deane Dray.
- That's got Bloomberg speculating on potential targets; Woodward (NASDAQ:WWD) could make sense because it would mesh well with HON’s aerospace offerings, with other possibilities including Brady Corp. (NYSE:BRC), Motorola Solutions (NYSE:MSI) and Japan's Yokogawa Electric (OTCPK:YOKEF).
- HON made just one purchase of size last year - a $185M acquisition of Datamax-O’Neil - and Roger Fradin, appointed to head up a push for M&A, said at the company’s investor day Wednesday that he was frustrated at the pace of acquisitions.
Mar. 4, 2015, 9:54 AM
- "While M&A is the priority, we will deploy net cash amounts in excess of $1B-$2B for incremental share repurchase, and are committed to growing our dividend rate faster than earnings," announced CEO Dave Cote at the company's investor day.
- Honeywell (HON -1.4%) also said it plans to add an additional dollar in earnings per share by 2018 via share repurchase programs and capital deployment.
- Previously: Honeywell affirms 2015 financial guidance (Mar. 04 2015)
Mar. 4, 2015, 8:40 AM
- At its annual investor conference in New York City today, Honeywell (NYSE:HON) again backed its previously disclosed financial guidance for 2015 and updated its outlook for Q1:
- Q1: Reported sales of ~$9.4B; Margin up ~130 bps vs. ~110 bps; Affirmed EPS of $1.36-$1.41.
- 2015: ~4% organic sales growth, up 1-2% Y/Y at $40.5B-$41.1B; Segment margin 17.6%-17.9%, up 100-130 bps; EPS of $5.95-$6.15, up 7-11% Y/Y; Free cash flow of $4.2-$4.3B, up 8-11% Y/Y.
- Honeywell also reaffirmed its five-year outlook for organic sales of $46B-$51B and segment margin of 18.5-20%.
- Previously: Honeywell backs 2015 guidance (Feb. 19 2015)
Mar. 2, 2015, 9:55 AM
- Expanding into the $1.5B global barcode printing segment, Honeywell (HON +1%) has completed its $185M acquisition of Datamax-O'Neil (DOV -0.5%), a global manufacturer of fixed and mobile printers.
- Honeywell also announced that it will be partnering with satellite internet startup OneWeb to expand the high-speed data services it offers to aircraft.
- OneWeb, whose investors include the Virgin Group and Qualcomm, plans to build a network of 648 low-orbit satellites capable of beaming fast internet around the world starting in 2019.
Feb. 19, 2015, 10:52 AM
- At the Barclays Capital Industrial Select Conference today, Honeywell (HON +0.2%) backed its view of ~4% organic sales growth of in 2015, up 1-2% Y/Y at $40.5B-$41.1B.
- The company also affirmed its EPS forecast of $5.95-$6.15, with free cash flow of $4.2-$4.3B.
- Honeywell shares have climbed almost 13% in the last 52 weeks.
Feb. 16, 2015, 2:47 AM
- The Federal Aviation Administration has proposed rules for commercial drone flights that would lift some restrictions but would still bar activities such as the delivery of packages and inspection of pipelines and crops.
- The guidelines would require unmanned aircraft pilots to obtain special pilot certificates, fly only during the day and below 500 feet. Pilots must also remain in the line of sight of their radio-control drone, which could limit commercial inspections and ground Amazon's (NASDAQ:AMZN) "Prime Air" program.
- The draft rules still must undergo public comment and revision before becoming final.
- Commercial drone-related stocks: AMBA, DPZ, HON, INVN, IXYS, GPRO, TRMB
Feb. 12, 2015, 2:07 PM
- Honeywell (NYSE:HON) declares $0.5175/share quarterly dividend, in line with previous.
- Forward yield 2.0%
- Payable March 10; for shareholders of record Feb. 26; ex-div Feb. 24.
Jan. 23, 2015, 7:59 AM
- Net income of $956M vs $947M in the same quarter a year ago. Earnings, adjusted for non-recurring costs, were $1.43 per share.
- Q4 profit by segment: Aerospace -14%; Automation and Control Solutions +8%; Performance Materials +6%.
- "In Q4, Honeywell delivered 4% organic sales growth and achieved 15% EPS growth (excluding the pension mark-to-market adjustment), exceeding the high end of our guidance range and capping off another year of terrific performance in 2014," said Honeywell CEO Dave Cote.
- The company reaffirmed its 2015 forecast: Organic sales growth of ~4%, up 1-2% Y/Y at $40.5B-$41.1B. 2015 EPS is expected to be between $5.95-$6.15, with free cash flow of $4.2-$4.3B.
- HON +1.5% premarket
- Q4 results
Jan. 23, 2015, 7:01 AM
- Honeywell (NYSE:HON): Q4 EPS of $1.43 beats by $0.01.
- Revenue of $10.26B (-1.3% Y/Y) beats by $50M.
Jan. 22, 2015, 5:30 PM
Jan. 8, 2015, 10:15 AM
- Honeywell (HON +1.5%) will report Q4 and full-year results on Jan. 23. The conference call is scheduled to begin at 9:30 a.m. EST.
- Consensus view is EPS of $1.42 on revenues of $10.2B.
Jan. 5, 2015, 8:43 AM
Dec. 15, 2014, 7:33 AM
- Honeywell (NYSE:HON) has lowered its Q4 sales forecast to $10.1B-10.2B from $10.3-10.4B, but reaffirmed its $1.37-$1.42 EPS estimate for the quarter.
- FY14 sales are expected to be in a range of $40.1-$40.2B, down from previous guidance of $40.3B-$40.4B. FY14 EPS is still anticipated to be in a range of $5.50-$5.55.
- The company forecasts 2015 organic sales growth of ~4%, up 1-2% Y/Y at $40.5B-$41.1B. 2015 EPS is expected to be between $5.95-$6.15, with free cash flow of $4.2-$4.3B.
- 2015 Outlook Conference Call at 9:00 a.m. ET
- HON +0.4% premarket
Dec. 1, 2014, 5:49 PM
- General Electric (NYSE:GE) was the day's biggest loser among the Dow 30, as J.P. Morgan analysts Stephen Tusa and Rajat Gupta include GE among among industrial companies confronted with big risks through their exposure to oil drilling.
- "The game has changed," the analysts say in now seeing a spread in EPS growth between those that have material exposure to energy and those that do not to a range of ~800 bps; regarding GE, JPM drops oil/gas growth to -2% from +5% and power/water growth to zero from +3% on the back of distributed power weakness, which it pegs at mid-single digit declines for two years, along with the onset of a decline in gas turbines.
- The firm also downgrades Dover (NYSE:DOV) to Underweight, reaffirms its Underweight on Rockwell Automation (NYSE:ROK), and continues to avoid Emerson Electric (NYSE:EMR), SPX Corp. (NYSE:SPW) and GE; it still likes a few with oil/gas exposure, such as Pentair (NYSE:PNR) given ongoing execution/margin potential, and Honeywell (NYSE:HON), given less direct impact and a strong balance sheet story.
Nov. 13, 2014, 10:13 AM| Nov. 13, 2014, 10:13 AM
Honeywell International, Inc. is a diversified technology and manufacturing company, which manufactures aerospace products, control technologies, power generation systems, specialty chemicals, fibers, plastics and electronic materials. The company provides a variety of services to its customers... More
Sector: Industrial Goods
Industry: Aerospace/Defense Products & Services
Country: United States
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