Honeywell Earnings on the Horizon

S&P 500 (NYSE:SPY) component Honeywell International (NYSE:HON) will unveil its latest earnings on Friday, October 19, 2012. 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 net income of $1.13 per share, a rise of 2.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.16. Between one and three months ago, the average estimate moved down. It also has dropped from $1.14 during the last month. Analysts are projecting profit to rise by 18.7% compared to last year’s $4.50.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of $1.14 per share against a mean estimate of net income of $1.11 per share.

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A Look Back: In the second quarter, profit rose 11.4% to $902 million ($1.14 a share) from $810 million ($1.02 a share) the year earlier, exceeding analyst expectations. Revenue rose 3.8% to $9.44 billion from $9.09 billion.

Stock Price Performance: Between July 20, 2012 and October 15, 2012, the stock price rose $3.11 (5.4%), from $57.74 to $60.85. It saw one of its worst periods between September 17, 2012 and September 25, 2012 when shares fell for seven straight days, dropping 3.9% (-$2.41) over that span.

Wall St. Revenue Expectations: On average, analysts predict $9.51 billion in revenue this quarter, a rise of 2.3% from the year-ago quarter. Analysts are forecasting total revenue of $38.1 billion for the year, a rise of 4.3% 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 10.8% in the third quarter of the last fiscal year, 4.8% in the fourth quarter of the last fiscal year and 4.5% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.3 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. The company regressed in this liquidity measure from 1.31 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 1.2% to $12.81 billion while assets rose 0.5% to $16.64 billion.

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

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