Honeywell (HON,$191.50) beats Q4 earnings expectations; offers weaker-than-expected guidance
Honeywell International Inc. reported its fourth-quarter earnings that beat expectations. However, the guidance offered by the conglomerate was weaker than expected.
The company's earnings came in at $2.09 a share, compared to analysts’ expectations of $2.08 a share. Revenue was $8.66 billion compared to the Street estimates of $8.73 billion.
The company said it was "an extremely challenging operating environment" during the period due to supply-related constraints within its aerospace division, and mask demand decreasing.
Honeywell’s Safety and Productivity Solutions division, which makes the masks, had a -10% decrease in sales in Q4. The company expects a further decline in mask demand this year.
Looking ahead, the company projects sales of $35.4 billion to $36.4 billion for 2022, below consensus forecast of $36.76 billion. It expects earnings in the range of $8.40 to $8.70 per share, also below the consensus of $8.97.
The company expects free cash flow to be about $4.9 billion in 2022. Analysts are projecting about $6 billion in free cash flow for this year.
HON's RSI Indicator recovers from oversold territory
The RSI Oscillator for HON moved out of oversold territory on April 09, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In of the 31 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 21, 2025. You may want to consider a long position or call options on HON as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for HON just turned positive on April 22, 2025. Looking at past instances where HON's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
HON moved above its 50-day moving average on April 29, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for HON crossed bullishly above the 50-day moving average on May 06, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HON advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for HON moved below the 200-day moving average on April 04, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HON declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HON broke above its upper Bollinger Band on April 29, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for HON entered a downward trend on April 14, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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