|Bid||87.55 x 1100|
|Ask||87.96 x 1300|
|Day's Range||87.75 - 88.22|
|52 Week Range||73.58 - 95.12|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.15|
|Expense Ratio (net)||0.47%|
In Q3 2018, Honeywell International’s (HON) PMT (Performance Materials and Technologies) segment was the second-largest contributor to HON’s total revenue. The segment’s contribution contracted 0.9 percentage points YoY (year-over-year) to 24.5%, from 25.4%. However, PMT’s revenues rose 2.7% YoY to $2.64 billion, from $2.57 billion.
In the third quarter, J.B. Hunt Transport (JBHT) reported total operating revenues of $2.2 billion—up 20.1% YoY (year-over-year). However, the company narrowly missed analysts’ revenue estimates. J.B. Hunt operates in four segments—Intermodal, Dedicated Contract Services, Integrated Capacity Solutions, and Truck.
3M (MMM) is one of the companies that has been generating a constant FCF (free cash flow) for a period of time. The quantum of the FCF generated by 3M in the past six years was an average of $4.7 billion, which indicates that 3M’s FCF is very strong.
On October 1, Boston-based industrial giant General Electric (GE) announced the appointment of H. Lawrence Culp as its chairman and CEO. The former head of Danaher (DHR) replaced John Flannery, whose 14-month tenure as GE’s CEO ended when the board of directors voted him out. GE’s board of directors also appointed Thomas Horton as the lead director of the company.
On September 11, Cummins (CMI) announced that it was awarded a $491 million contract by the United States Department of Defense. Cummins will manufacture and supply diesel-powered generators to the department and supply AMMPS (Advanced Medium Mobile Power Sources) generator sets to the US military. Under the contract, it will deliver the generator sets through 2023.
General Electric: Is There a Light at the End of the Tunnel? The clash intensified on September 24 when the US and China targeted each other with the biggest round of tariffs yet. China imposed new taxes of 5%–10% on $60.0 billion of US merchandise like clothes, auto parts, meat, and chemicals.
Of the 27 analysts covering United Parcel Service (UPS), six analysts (22%) have a “strong buy” recommendation on the stock. Four analysts recommend a “buy,” and 15 analysts (56%) have a “hold” recommendation. One analyst each has a “sell” and “strong sell” recommendation on UPS stock.
Eastern US railroad giant CSX Corporation (CSX) reported 6.1% YoY (year-over-year) carload traffic growth in Week 30. The railroad’s intermodal gains were lower than carload traffic growth in the week. CSX moved ~71,000 railcars excluding intermodal compared to ~66,900 railcars in the previous year.
In this last part of the series, let’s see how Thomson Reuters analysts are rating XPO Logistics (XPO) before its second-quarter earnings release. Currently, 20 analysts are covering the stock. Four (20%) of them are bullish on the stock and have rated it a “strong buy.” Twelve of them (60%) have rated it a “buy,” and the remaining four (20%) have recommended a “hold.” None of the analysts have rated the stock a “sell.”
3M’s (MMM) Consumer segment contributed 14.6% to the company’s total revenue in Q2 2018 compared to 15% in Q2 2017, a decrease of 0.4 percentage points on a year-over-year basis. The segment reported revenue of $1.33 billion in Q2 2018, an increase of 3.6% on a year-over-year basis. In Q2 2017, the segment reported revenue of $1.29 billion.
Honeywell International’s (HON) SPS (Safety & Productivity Solutions) segment is its smallest but fastest growing. In Q2 2018, its contribution to HON’s total revenue expanded YoY (year-over-year) to 14.8% from ~13.1%, rising YoY to $1.61 billion from $1.43 billion.
Honeywell International’s (HON) SPS (Safety and Productivity Solutions) segment is its smallest revenue contributor, accounting for 13.9% of its total revenue in 1Q17 and 1Q18. SPS revenue rose ~9.4% YoY (year-over-year) to $1.5 billion in 1Q18 from $1.3 billion.
As of April 13, 2018, Honeywell’s (HON) one-year forward PE (price-to-earnings) multiple was 18.3x. In comparison, peer United Technologies (UTX) had a one-year forward PE multiple of 17.4x. After Honeywell announced its 4Q17 earnings, its valuation touched a high of 20.8x. However, recent market volatility has pushed HON’s and UTX’s valuation downward.