Global diversified technology and manufacturing firm Honeywell International Inc (HON) has a balanced mix of long and short-cycle businesses. In a concerted effort to align its portfolio around “Great Positions in Good Industries” and leverage on technological synergies, HON is actively restructuring its operating segments.
However, despite HON’s proactive restructuring initiatives, it is yet to witness signs of stabilization in a number of its major end markets. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report. In the last four trailing quarters, HON has reported a positive average earnings surprise of 1.53%.
Earnings estimate revisions have moved south in the last month on apprehensions and uncertainty regarding both operational and execution risks. Currently, HON has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: HON beat on earnings. Our consensus called for EPS of $1.42, and the company reported EPS of $1.43.
Revenue: Revenues Beat. HON posted revenues of $10,266 million, compared to our consensus estimate of $10,222 million.
Key Stats to Note: Management’s continued efforts to launch products and technologies in order to drive organic growth and expand its business in new geographical regions are praiseworthy. The restructuring and cost streamlining initiatives should translate into continued margin expansion in the second half of the year.
Stock Price: Shares prices remained flat in pre-market trading following the earnings beat at the time of writing.
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