Industrial conglomerate Honeywell (NASDAQ:HON) will be reporting earnings this Thursday before market hours. Here’s what you need to know.
Honeywell beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $9.82 billion, up 7.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Honeywell a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Honeywell’s revenue to grow 5.1% year on year to $10.07 billion, in line with the 4.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.66 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 5 upward revisions over the last 30 days (we track 14 analysts). Honeywell has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Honeywell’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. GE Aerospace delivered year-on-year revenue growth of 21.2%, beating analysts’ expectations by 15.6%, and 3M reported a revenue decline of 1.6%, topping estimates by 0.9%. GE Aerospace traded down 1.1% following the results while 3M was also down 4%.
Read our full analysis of GE Aerospace’s results here and 3M’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 7.9% on average over the last month. Honeywell is up 5.3% during the same time and is heading into earnings with an average analyst price target of $246.63 (compared to the current share price of $236.70).
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