Analysts Are Updating Their Honeywell International Inc. (NYSE:HON) Estimates After Its Yearly Results
Last week, you might have seen that Honeywell International Inc. (NYSE:HON) released its yearly result to the market. The early response was not positive, with shares down 3.1% to US$196 in the past week. Results were roughly in line with estimates, with revenues of US$33b and statutory earnings per share of US$6.72. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Honeywell International
Taking into account the latest results, the consensus forecast from Honeywell International's 19 analysts is for revenues of US$34.1b in 2021, which would reflect an okay 4.4% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to climb 15% to US$7.82. In the lead-up to this report, the analysts had been modelling revenues of US$33.9b and earnings per share (EPS) of US$7.80 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$209, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Honeywell International, with the most bullish analyst valuing it at US$260 and the most bearish at US$140 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Honeywell International is forecast to grow faster in the future than it has in the past, with revenues expected to grow 4.4%. If achieved, this would be a much better result than the 2.6% annual decline over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 6.9% next year. Although Honeywell International's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Honeywell International's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$209, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Honeywell International going out to 2023, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Honeywell International that you should be aware of.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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