|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||173.88 - 174.17|
|52 Week Range||173.88 - 17,832.00|
|Beta (3Y Monthly)||-0.14|
|PE Ratio (TTM)||16.83|
|Forward Dividend & Yield||3.28 (2.06%)|
|1y Target Est||N/A|
The industrial conglomerate (ticker: HON) reported second-quarter earnings of $2.10 a share and $9.2 billion in sales. Earnings per share beat Wall Street predictions by about 2 cents. Management now expects to earn roughly $8.05 a share in 2019, although Wall Street believes the company can earn $8.11, meaning analysts are still a little more optimistic than management.
UnitedHealth, Honeywell, Wayfair, AT&T, Microsoft and Impossible Foods are the companies to watch.
Honeywell International reported better than expected earnings numbers today and the stock is higher, but the charts and indicators suggest we could see weakness in the weeks ahead. In this daily bar chart of HON, below, we can see signs of weakness and bearish divergences. In the lower panel is the 12-day price momentum study or indicator which shows lower highs from late April to June to now.
Shares of Honeywell International Inc. rose 0.8% in premarket trading Thursday after the industrial conglomerate reported a second-quarter profit that topped expectations while sales fell shy, and lifted the low end of its full-year guidance ranges. Net income rose to $1.56 billion, or $2.10 a share, from $1.28 billion, or $1.68 a share, in the year-ago period. Adjusted earnings per share rose to $2.10 from $1.93, above the FactSet consensus of $2.08. Sales fell 15% to $9.24 billion, citing the impact of spinoffs, and missed the FactSet consensus of $9.35 billion, as aerospace sales fell less than expected, building technologies and performance materials and technologies sales were roughly in line with expectations and safety and productivity solutions sales fell more than expected. For 2019, Honeywell lifted the low end of its guidance ranges for EPS to $7.95 to $8.15 from $7.90 to $8.15, for sales to $36.7 billion to $37.2 billion from $36.5 billion to $37.2 billion and for adjusted free cash flow to $5.7 billion to $6.0 billion from $5.5 billion to $6.0 billion. The stock has rallied 27.6% year to date through Wednesday, while the Dow Jones Industrial Average has gained 16.7%.
Potentially hundreds of Boeing 737 and 777 planes worldwide are flying with unsafe systems vulnerable to passenger cellphones, Bloomberg News reported, citing a 2014 Federal Aviation Administration safety bulletin. The display units vulnerable to interference were made by Honeywell International , which says it is only aware of one case where all six display units in a 737 went blank, which was caused by a software problem that has been fixed and been flight tested. Boeing found the interference only in a lab test in 2012, the report said.
Honeywell posted stronger-than-expected second quarter earnings Thursday, and boosted its full-year profit guidance, as it aerospace division recorded double-digit sales growth thanks to strength in its U.S. and international defense and space business.
The New Jersey-based industrial giant said organic sales — which strip out the impact of foreign exchange and the spin off of its home and transportation systems businesses — rose 5 per cent, shy of analysts’ expectations for a 6.3 per cent increase, according to a Refinitiv survey of analysts. “We are continuing to plan cautiously for the second half of the year given the uncertain macro environment in which we operate,” said chief executive Darius Adamczyk.
Honeywell stock has been a strong performer lately, and its earnings report Thursday should help investors navigate through slowing global growth and Boeing’s 737 MAX situation.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Darwin Cove Convention Centre Pty Limited and other ratings that are associated with the same analytical unit. "IMPORTANT NOTICE: MOODY'S RATINGS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Jefferies thinks factory automation is an investible theme. Automation is one reason the broker likes shares of Honeywell, maker of many productivity solutions for industrial businesses. But strangely, Jefferies also recommends shares of steelmaker Nucor because of the same automation trends.
(Bloomberg Opinion) -- United Technologies Corp. CEO Greg Hayes dropped the bombshell news of his company’s merger with missile-maker Raytheon Co. just days before the start of the Paris Air Show, thereby ensuring rivals would have to answer questions about the deal at the industry’s premier event. The deal will turn United Technologies into a $74 billion commercial aviation and defense powerhouse, with the kind of scale and negotiating leverage that was previously only enjoyed by Boeing Co. and Airbus SE. Management at General Electric Co. and Honeywell International Inc. don’t seem in any rush to respond in kind, and they aren’t so sure bigger is better. But the United Technologies-Raytheon merger is so big that it will be impossible for them to ignore it.“We’ve never really considered scale as a part of our strategy,” Tim Mahoney, CEO of Honeywell Aerospace, said in an interview at the Air Show on Monday. The company prioritizes differentiated products that are more than a “me-too” and believes that will ultimately give it an advantage with manufacturers and airlines, he said. GE’s David Joyce, who heads up the company’s aerospace business, echoed that thought in a Bloomberg TV interview: “That merger may have scale but we have the right technologies and engines to be competitive.”During a media briefing earlier in the day, Joyce touted the advantages of GE’s Leap engine over the rival geared turbofan from United Technologies’ Pratt & Whitney arm, including what he says is a $1.4 million advantage in residual value and 6% better utilization. After the merger, GE’s biggest jet engine rivals will continue to be Pratt & Whitney and Rolls-Royce Holdings Plc, and “I feel really good about our positioning relative to either of those competitors right now,” Joyce said. The “right now” part of that sentence seems key. No, GE isn’t gaining a new competitor, but it is going to see a very different one.United Technologies and Raytheon are targeting $8 billion in annual R&D spending. GE Aviation spent $1.5 billion on R&D in 2018, including contributions from customers, according to its annual filing. That would put the aviation unit’s R&D spending at about 5% of sales. At the media briefing, Joyce said GE Aviation spends about 8% of its sales on R&D, which is based on $2.4 billion in total “engineering” spend. Either way, it’s less than the nearly 11% of United Technologies-Raytheon’s combined sales that will be devoted to investing in new products. Honeywell doesn’t disclose R&D spending by division, but spent $1.8 billion on company-sponsored R&D across all its businesses in 2018, according to its 10K. That’s roughly 4.3 percent of its total sales last year.The dollar amount isn’t everything. As GE itself knows far too well from its experience going down the rabbit hole on its Predix software platform, it’s quite easy to spend a lot of money without anything to show for it. And United Technologies will admittedly be distracted while it integrates not only Raytheon, but the $30 billion acquisition of avionics maker Rockwell Collins Inc., which only just closed in November. Not to mention it’s also trying to break itself in three parts. The company’s wager on scale is still highly untested and despite all the speculation about the sweeping consolidation its dealmaking might inspire, we haven’t seen much of that. Of the eight aerospace and defense deals larger than $5 billion over the past decade, United Technologies (or Rockwell Collins) has been involved as a buyer in four of them; United Technologies also sold its Sikorsky helicopter unit to Lockheed Martin Corp. for $9 billion in 2015. The party of bigger is better is pretty much a party of one – again, for now.Joyce interestingly said that while the United Technologies-Raytheon tie-up doesn’t make him feel compelled to act, he “wouldn’t rule out anything” when it comes to a deal with a good value proposition, and that he talks to CEO Larry Culp on a regular basis. That echoes increasingly frequent comments made by Culp about going on offense. I do wonder whether GE is thinking more seriously about dealmaking – or if it just wants investors to think that it is. As for the much-debated possible combination of GE Aviation and Honeywell Aerospace, I don’t get the impression the latter is that interested. Honeywell views acquisitions as a way to extend the capabilities of its businesses, rather than double down on more of the same, Mahoney said. He gives the example of Honeywell’s purchase of fuel-efficiency software maker Aviaso in 2015 for an undisclosed amount. Mahoney said he wished Aviaso was a larger business, which suggests he’s not opposed to bigger takeovers but only if the technology is really compelling.So don’t hold your breath on that one. But could there be other deals? Check back at next year’s Air Show in Farnborough. To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Honeywell is bullish on the outlook for the aerospace business, which accounts for about 45% of its sales.
(Bloomberg Opinion) -- No aerospace and defense company has bet bigger on the benefits of scale than United Technologies Corp. Its latest megadeal with Raytheon Co. should be a wake-up call to its rivals.United Technologies is merging with Raytheon in an all-stock transaction that will create a behemoth with about $75 billion in sales spanning jet engines, airplane seats, missile-defense systems and radar technologies. There have been only four aerospace and defense deals valued at more than $10 billion in the past decade, and United Technologies now accounts for three of them. As for the others, Boeing Co. spent more on publicly disclosed aerospace M&A over that period than either General Electric Co. or Honeywell International Inc., reflecting a push to bring more of its supply-chain in house. Both Honeywell and GE have their reasons for sitting out the M&A rush. After former Honeywell CEO Dave Cote made a failed attempt at merging with United Technologies in 2016, his successor Darius Adamczyk has preferred to focus on streamlining his company and making small, strategic software bets. And while new GE CEO Larry Culp has talked a lot recently about eventually playing “offense” via M&A, the company’s power unit remains mired in a slump and off-balance sheet liabilities still loom large.GE’s challenges were just starting to come to light when United Technologies CEO Greg Hayes made a $30 billion play for Rockwell Collins Inc. in 2017. Some speculated the sidelining of GE as a counterbidder was one reason he decided to jump on the opportunity. Nearly two years later, GE is still nowhere near healthy enough to contemplate a credible competing offer for Raytheon. But the consolidating landscape may prompt both it and Honeywell to think more aggressively about dealmaking. United Technologies is still in the process of integrating the Rockwell Collins purchase, which closed late last year. Management is apt to be distracted as it juggles that process, the Raytheon deal and a plan to spin off its Carrier building-controls and Otis elevator units. There may be an opportunity in the short-term for the company's rivals to pick up market share. Honeywell’s Adamczyk has made the argument that scale doesn’t matter nearly as much as the quality of the product and has said he feels comfortable with how his company has differentiated itself. There’s some validity to that. I myself have been skeptical of the ultimate value of scale at a time when Boeing is pushing for constant cost cuts and encroaching on its suppliers’ territory with its own parts and services offerings.But pressure will grow on small and mid-range aerospace suppliers to merge to stay relevant. And the sheer breadth of the United Technologies-Raytheon-Rockwell Collins business will make it difficult for even the biggest companies to simply stand pat.For one, United Technologies now has all the right pieces to become a clear leader in the race to develop connected aircraft. The Rockwell Collins deal gave it expertise in avionics, essentially the brains of the airplane. Raytheon will give it cyber-security expertise, helping to solve one of the key concerns airlines have about digitizing parts of their planes. Honeywell has made its own impressive inroads into the digital realm via its GoDirect software services, crowd-sourced radar and wireless connectivity tools, but it will now have to contend with much fiercer competition. Boeing, too, had been hoping for a piece of the burgeoning connected-aircraft market. Stifel Financial Corp. analyst Joseph DeNardi said he had long seen the company as a possible acquirer of Raytheon. But the cash-flow drain precipitated by the grounding of the company’s 737 Max jet makes large-scale M&A untenable right now and the ensuing crisis has raised questions about whether Boeing should even be allowed to further tighten its grip on the aerospace market.The deal some investors still dream about is a combination of Honeywell and GE’s aviation units. Culp’s repeated talk of eventually playing offense has made me wonder if he’s thinking more seriously about a transaction of that magnitude. Even combined, the companies would still trail the sales volume of a merged United Technologies-Raytheon, but it would go a long way toward catching them up. There are also plenty of reasons to think a Honeywell-GE aerospace merger wouldn’t happen. It would be enormously complicated, particularly when it comes to determining an appropriate valuation for a GE aviation unit for which the company’s own investors have wildly different estimations.Honeywell’s Adamczyk has already successfully resisted calls from activist investor Dan Loeb to carve out the aerospace unit into a separate entity, although arguably his software investments could go a lot further if applied to a more focused company. An alternative may be for Honeywell or GE to copy United Technologies’ playbook and increase their exposure to the defense industry. The union of Raytheon and United Technologies has called attention to the dearth of commercial exposure at Northrop Grumman Corp. and Lockheed Martin Corp., says Bloomberg Intelligence analyst Douglas Rothacker.Any further consolidation in the aerospace and defense sector may be predicated on antitrust regulators’ view of the United Technologies-Raytheon combination. The companies say they have very little overlap and are promising to share half of their targeted $1 billion in cost savings with their U.S. government customers. But President Donald Trump expressed some concern about the merger to CNBC on Monday, questioning whether it may dampen competition for military projects. (1)Either way, United Technologies CEO Hayes’s willingness to pursue such a dramatic rethink of his company has already radically changed the game for aerospace and defense companies. His rivals will likely have to change as well to keep pace.(1) Of note: The$20 billion mergerHarris Corp. announced last year with fellow defense contractor L3 Technologies Inc. is also still awaiting regulatory signoff, although that's expected to come soon.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Honeywell's Latest Dividend(Continued from Prior Part)Analysts’ consensus on HoneywellCurrently, 24 analysts are tracking Honeywell—one higher compared to the number of analysts at the beginning of the year. Among the analysts, 83% of them
Honeywell's Latest Dividend(Continued from Prior Part)Honeywell’s dividend yield As of May 22, Honeywell’s (HON) dividend yield was ~1.9%, which is lower than the dividend yield of 2.06% at the end of the first quarter.
Honeywell's Latest Dividend(Continued from Prior Part)Honeywell’s second-quarter dividendIn a press release on April 29, Honeywell (HON) announced the key dates for its second-quarter dividend. To be eligible for the dividend, investors must hold