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 in downward trend: 10-day moving average crossed below 50-day moving average on April 12, 2024
The 10-day moving average for HON crossed bearishly below the 50-day moving average on April 12, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 03, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on HON as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HON turned negative on April 03, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
HON moved below its 50-day moving average on April 10, 2024 date and that indicates a change from an upward trend to a 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 March 27, 2024. 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.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HON advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 276 cases where HON Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HON’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: HON's P/B Ratio (8.313) is slightly higher than the industry average of (2.320). P/E Ratio (23.851) is within average values for comparable stocks, (18.658). Projected Growth (PEG Ratio) (2.073) is also within normal values, averaging (1.523). Dividend Yield (0.021) settles around the average of (0.126) among similar stocks. P/S Ratio (3.682) is also within normal values, averaging (152.602).
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General Information
an industrial conglomerate which operates as a diversified technology and manufacturing company
Industry MetalFabrication