Honeywell International Inc. HON recently launched a cloud-based software solution to help organizations track, manage and optimize mobile computers throughout the operational lifespan. Notably, the enterprise asset management solution — Honeywell Operational Intelligence — is compatible with operating systems like Android and iOS, as well as any manufacturer’s devices.
With its analytical capabilities, the software solution facilitates streamlining of IT processes by integrating returns processes into one system and offers insights into device utilization across facilities. Moreover, the solution helps in cutting expenses on technology, additional equipment and servicing working devices
Notably, the Honeywell Operational Intelligence solution is included in the company’s recently launched Honeywell Marketplace — an online application store. The store is designed for customers to assess and purchase business-friendly software for various industries like healthcare, manufacturing, retail, transportation and logistics.
Existing Business Scenario
Honeywell believes that solid demand for its commercial fire and productivity products will boost its Safety and Productivity Solutions’ revenues in the quarters ahead. Also, strength in licensing and engineering sales is likely to keep driving revenues of the company's Performance Materials and Technology business. As a matter of fact, stronger sales volumes, increased productivity and ongoing commercial effectiveness actions will likely improve its near-term profitability.
Over the past month, this Zacks Rank #3 (Hold) company's shares have gained 1.2% against 0.5% decline recorded by the industry.
Also, Honeywell has been steadily improving its liquidity on the back of increased operational efficacy. Notably, in 2018, it generated more than $6 billion free cash flow, up 22% year over year. In addition, the company is progressing well with its portfolio transformation strategy, having declared spin-off dividends of shares of Resideo, and completing the divestment of Garrett Motion Inc.
However, Honeywell is currently dealing with rising costs of sales. Notably, in 2018, the company's cost of sales increased 5.3% year over year. Going forward, it expects inflation in a number of areas like material and labor.
Stocks to Consider
Some better-ranked stocks in the same space are Carlisle Companies Incorporated CSL, United Technologies Corporation UTX and Federal Signal Corporation FSS. While Carlisle sports a Zacks Rank #1 (Strong Buy), United Technologies and Federal Signal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carlisle pulled off average positive earnings surprise of 15.00% in the trailing four quarters.
United Technologies delivered average earnings surprise of 14.87% in the trailing four quarters.
Federal Signal delivered average positive earnings surprise of 21.57% in the trailing four quarters.
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Honeywell International Inc. (HON) : Free Stock Analysis Report
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