Honeywell International Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Honeywell International (NYSE:HON) will unveil its latest earnings tomorrow, Friday, January 25, 2013. Honeywell International is a technology and manufacturing company which offers aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers and automotive products.

Honeywell International Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.09 per share, a rise of 3.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.15. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.09 during the last month. For the year, analysts are projecting net income of $4.48 per share, a rise of 18.2% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 7 cents, coming in at profit of $1.20 a share versus the estimate of net income of $1.13 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit rose 10.2% to $950 million ($1.20 a share) from $862 million ($1.10 a share) the year earlier, exceeding analyst expectations. Revenue rose 0.5% to $9.34 billion from $9.3 billion.

Here’s how Honeywell International traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Analyst Ratings: With 17 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Wall St. Revenue Expectations: On average, analysts predict $9.51 billion in revenue this quarter, a rise of 0.4% from the year-ago quarter. Analysts are forecasting total revenue of $37.6 billion for the year, a rise of 2.9% from last year’s revenue of $36.53 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.8% in the fourth quarter of the last fiscal year, 4.5% in the first quarter and 3.8% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.4 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)