|Bid||171.00 x 800|
|Ask||173.67 x 800|
|Day's Range||173.54 - 174.79|
|52 Week Range||123.48 - 177.36|
|Beta (3Y Monthly)||1.25|
|PE Ratio (TTM)||19.25|
|Earnings Date||Jul 18, 2019|
|Forward Dividend & Yield||3.28 (1.89%)|
|1y Target Est||180.32|
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll look at...
General Electric is making major changes after a brutal couple of years. Here is what the fundamentals and technical analysis say about buying GE stock now.
United Technologies (UTX) is diversified manufacturer operating in the building and aerospace industries. UTX???s branches include the well-known Otis Elevators, Carrier HVAC, and aerospace engine builder Pratt-and-Whitney.
(Bloomberg Opinion) -- Clouds of worry have been gathering over the commercial aviation industry, but the sun was shining in Paris this week as planemakers and suppliers gathered for the biennial Air Show.I mean that both literally — it was hot — and figuratively, with every executive I talked to adopting the same tone of cautious optimism. They conceded the market is slowing: Amid sputtering air traffic growth, weakening airline profits and a slowing global economy, orders at the Paris Air Show trailed the tally from last year’s Farnborough Air Show on both a unit and dollar basis, according to an analysis by Bloomberg Intelligence’s George Ferguson and Francois Duflot. And the orders that were announced weren’t always written in stone. Vertical Research Partners analyst Rob Stallard counted about 610 commitments for new planes between Boeing Co. and Airbus SE (short of his forecast for 800), but only about 160 of those are firm orders for large aircraft and all of those belong to Airbus.(1) Some orders for Airbus’s new A321XLR — a longer-range version of its top-selling narrow-body jet that was unveiled as expected this week — were converted from existing commitments for previous A320-family models. But there were orders, including a surprise bid from British Airways parent IAG SA for Boeing’s embattled 737 Max jets (more on that later). While everyone no doubt would have preferred a stronger showing, no one was panicking, either.Global growth in demand for commercial aviation is likely to slow to a pace of about 5% this year from around 7.5% to 8% in the past few years, according to the International Air Transport Association. “That’s still a pretty good place to be — look at what many other industries are doing,” Tony Wood, CEO of aircraft braking and fire-protection equipment maker Meggitt Plc, said in an interview. “It’s certainly quicker than the world is growing.” Tim Mahoney, CEO of Honeywell International Inc.’s aerospace unit, pointed out that airlines are filling the capacity they lost when two fatal crashes prompted a global grounding of Boeing’s Max through leases and older aircraft that are staying in service longer than planned. Jet Airways India Ltd. suspended operations in April after running out of cash and is heading to bankruptcy court, but some of its fleet has already been reallocated, Mahoney said. “It’s a validation that the demand from the flying public is there and it continues to grow,” he said. Boeing, meanwhile, now expects the commercial aviation market to need 44,040 new jets and $9.1 trillion of services over the next 20 years. That compares with last year’s prediction of 42,730 jets and $8.8 trillion of services.So, Boeing and Airbus’s backlogs are likely safe in their robustness for the time being. But as I said going into the show, the question is whether they’ve already saturated the market and whether those backlogs will continue to grow. Executives from CFM International, the engine joint venture between General Electric Co. and Safran SA, weren’t super enthusiastic about production rate increases for Airbus’s A320 family. It’s not clear that the supply chain is capable of handling a more aggressive pace, particularly the forging and casting companies, which have been the primary source of delays over the past few years. At a media briefing on Saturday, CFM executives said they also want to be sure any production rate increase is sustainable and will serve the market over the long-term — not just at its peak. The relative dearth of orders at this year’s Air Show would seem to support their cautious stance.ALL’S FAIR IN LOVE AND THE MAXBoeing’s Air Show order tally fell about $10 billion short of Airbus’s haul, but IAG’s commitment to buy 200 Max jets means more for the company than the final total. IAG CEO Willie Walsh, a former 737 pilot, said he would feel comfortable boarding a Max tomorrow. He can’t actually do that because the planes remain grounded globally, but it was a huge vote of confidence when Boeing needed one desperately. That kind of endorsement most likely didn’t come cheap: the list price for the planes IAG intends to buy is $24 billion, but the true price is likely much lower after adjusting for standard discounts and probably a few extra incentives. It’s not a done deal just yet. IAG only signed a letter of intent, which gives it an out in case the Max runs into more problems or if Airbus comes up with a better offer. Airbus sales chief Christian Scherer said his company was never invited to bid on the deal but would very much like to. Either way, IAG’s willingness to back the Max gets Boeing out of the aviation industry’s version of timeout. This was always inevitable. Customers have been resolute in their confidence that Boeing will make the fuel-efficient Max safe to fly again. IAG had previously relied largely on Airbus models for its shorter hauls, so the fact that it’s the one stepping up with a Max order is a testament to airlines’ desire to maintain competition between the two companies. But I do wonder whether that kind of dynamic properly incentivizes Boeing to address the transparency, communication and oversight issues that allowed the Max’s shortcomings to morph into a full-blown crisis. Meanwhile, a good chunk of Airbus’s orders were for the freshly rolled-out XLR, with American Airlines Group Inc. agreeing to buy 20 of the planes and convert existing orders into 30 more. Boeing’s sales chief Ihssane Mounir said in a closing press conference that the XLR addressed only a “sliver” of the middle market and that there’s still an untapped opportunity for a rival offering it’s contemplating. That was backed up by comments from the CEOs of JetBlue Airways Corp. (which ordered 13 XLRs) and Norwegian Air Shuttle ASA (which is thinking about buying the Airbus jet), with both advocating for the range advantages of a possible Boeing new middle-market aircraft. But while Boeing CEO Dennis Muilenburg said there was no plan to accelerate the development of a successor to the 737 model, the Max crisis and advances in manufacturing and engine technology may force it to give that kind of project precedence over a middle-market jet. MEGADEAL SHOWCASEFor all the optimism about continuing growth, I thought it was interesting that Raytheon Co.’s CEO Tom Kennedy and CFO Toby O’Brien chose to cast their company’s merger with United Technologies Corp. as a bet on the long-term value of resiliency. Eventually, the booming growth the aerospace and defense sector have enjoyed simultaneously the past few years is going to come to an end; it’s rare that the two sectors move in tandem. Revenue for the combined United Technologies-Raytheon will split nearly equally between commercial and defense products and between domestic and international markets. “We didn’t have to do this,” O’Brien said. But the combination “makes for a really resilient company through all cycles. If you’re in it for the long haul, why wouldn’t you want that?” Kennedy said he’s not concerned about a slowdown in defense spending in the near-term, given governments’ continuing concerns about geopolitical turmoil. He pointed to backing from both the U.S. House of Representatives and the Senate for more increases in the Defense Department’s budget for research, development, test and evaluation. The deal with United Technologies will help Raytheon compete more aggressively for the next generation of military franchises by giving it new technological capabilities, Kennedy and O’Brien said. The potential for advancements in compact, high-energy power generation, thermal management and hypersonics is intriguing, and the combined company’s $8 billion annual R&D budget will give it an exorbitant amount of money to play with. But revenue synergies are notoriously more fungible than cold hard cost cuts. So the companies’ willingness to share about half of the $1 billion-plus in annual cost savings they’re targeting with the U.S. government may prove the bigger competitive advantage.The synergies number struck analysts as quite low at only about 1% of the combined company’s $74 billion in sales. O’Brien acknowledged the figure is conservative but said the deal was light on integration work because the Raytheon businesses will continue largely as their own units rather than having their contents strewn about between existing United Technologies operations. While that limits the cost savings, it also makes it harder for United Technologies to foul up the deal as it juggles the Raytheon purchase with the continuing integration of Rockwell Collins Inc. and a pending three-way split. With plenty of time and opportunity for something to go wrong here, United Technologies’ wager on scale is relatively untested and GE and Honeywell aren’t so sure that a bigger aerospace and defense company is necessarily going to be a better one. Both argue they have technology advantages that will keep them competitive. But GE again made interesting noises about possible M&A, with aviation head David Joyce noting that he didn’t feel compelled to act by the United Technologies-Raytheon tie-up but “wouldn’t rule out anything.” SOMETHING TO PROVEWith the United Technologies-Raytheon merger looming large and questions mounting about cash flow for GE’s aviation unit, Joyce used the Paris Air Show to strike back at critics. GE Aviation and its CFM engine joint venture tallied $55 billion orders for engines and services at the event. Not all of that was technically new, but the haul was anchored by a legitimately impressive $20 billion order for Leap engines and services from Indian budget carrier IndiGo, which had previously relied exclusively on United Technologies jet engines to power its Airbus A320neo fleet. Joyce also laid out the most in-depth road map for a unit’s free cash flow that I’ve ever seen GE provide. But in what has become an unfortunate pattern for GE, what was probably a well-intentioned attempt at transparency sparked only more questions. Analysts continued to pick apart whether the aviation unit’s $4.2 billion in free cash flow last year reflects the full tax, pension and overhead cost burden it would bear if the business were to stand alone. While GE hasn’t voiced any plans to spin off the aviation unit — and I’m highly doubtful it would be able to do that given continuing challenges in the power and long-term care insurance operations — many investors rely on a sum-of-the-parts analysis to determine the stock’s appropriate valuation. So the legitimacy of that $4.2 billion number as the basis for an independent aviation unit is at the crux of the debate over where the share price goes from here. After walking through the numbers with GE, I feel more comfortable about how they arrived at the $4.2 billion number. But no one knows for sure how all the numbers would shake out if aviation was ever detached from the mothership and the financial benefits inherent in that structure. United Technologies is taking about 18 months to split itself into three parts, and its structure is arguably less difficult to untangle. So I don’t think this debate is going away.QUICK NOTE ON GECASGE’s jet-lessor arm announced a deal to lease 15 additional Boeing 737-800 converted cargo aircraft to Amazon.com Inc., expanding on an earlier agreement to provide the retail giant with five planes. Amazon aims to have 70 aircraft flying on its network by 2021 in just the latest reminder that its logistics aspirations are a real and growing threat to FedEx Corp. and United Parcel Service Inc. In a presentation announcing the latest deal with Amazon, GECAS executives said it costs about $8 million to convert a Boeing 737-800 into a cargo plane. In a separate conversation, Sarah Rhoads, the director of Amazon Air, said the company put out requests for proposals to other lessors and that its ultimate choice had to be cost-effective. She said she felt good about partnering with GECAS. In a meeting with analysts this week, Alec Burger, who heads GECAS, acknowledged that the forecast for the air-cargo market was flat in 2019 amid escalating trade tensions but said the continuing shift to online shopping will continue to support demand in the long term and he’s looking to “modestly grow” the share of the lessor’s portfolio that’s devoted to that market. He said Amazon is not a “must-win account.”DEALS, ACTIVISTS AND CORPORATE GOVERNANCECrane Co. is following through on its threat to take its $45-a-share takeover offer directly to Circor International Inc.’s shareholders. It’s rare to see a true hostile tender offer, so for the M&A nerd in me, this is exciting. Circor’s board said on Monday that it would review the offer and make a recommendation to shareholders within 10 business days. It had previously rebuffed Crane’s offer as opportunistic and said it undervalued the company, a point of view that some shareholders pushed back on, given the choppy — and lately lower — stock price. Mario Gabelli, whose Gamco Investors Inc. is the largest shareholder of Circor, has also criticized the company’s lack of transparency in disclosing Crane’s interest. We are still awaiting the release of a business plan that Circor promised would show a path to greater valuation creation, but Crane’s willingness to go hostile forces Circor into an even tighter corner. Delta Air Lines Inc. bought a 4.3% stake in Hanjin Kal Corp., the largest shareholder in Korean Air Lines Co. Delta and Korean Air have a trans-Pacific joint venture that allows the two carriers to coordinate on flights in Asia and the U.S. Delta expects to boost its stake to 10% over time. The stake purchase is the latest in a string of similar deals with other partners including Brazil’s Gol Linhas Aereas Inteligentes SA and China Eastern Airlines Corp. But the deal also puts Delta in the middle of an activist shareholder’s campaign to push Hanjin Kal to provide more transparency and improve corporate governance. Shares of Hanjin Kal, whose operations also span logistics services, plunged on news of Delta’s investment in an apparent sign that investors see the company’s stake as a roadblock to the activists’ goals. Mitsubishi Heavy Industries Ltd. appears to be moving forward with its interest in acquiring Bombardier Inc.’s CRJ regional jet program. A takeover “would make a lot of sense,” Steve Haro, vice president in charge of global marketing and strategy at Mitsubishi Aircraft Corp., told Bloomberg News at the Paris Air Show. He said news about “new strategic partnerships” would be forthcoming. Recall that Nikkei had reported earlier this month that Mitsubishi wanted to only carve out the aircraft maintenance network of the CRJ program, but Bombardier had insisted on the unit being sold in its entirety.BONUS READING New York Fed Factory Gauge Drops by Record to Two-Year Low Siemens to Cut 2,700 Jobs at Energy Unit Due for Listing Fight for Survival on Doomed Jet Came Down to Two Cockpit Wheels Southwest Pilots to Seek Recovery of 737 Max Costs From Boeing Airbus Says It Must Slash A350 Costs to Win Wide-Body Price War Craft Breweries Are Booming Even as Americans Drink Less BeerIf you’d like to get these weekly industrial insights delivered to your inbox, please email me directly at firstname.lastname@example.org, and ask to join the list. Thanks!(1) Stallard excludes announcements for options or future purchase rights and planes that will be taken throughaircraft lessors.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis 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.
MORRIS PLAINS, N.J. , June 21, 2019 /PRNewswire/ -- Honeywell ( NYSE: HON ) will issue its second quarter financial results before the opening of The New York Stock Exchange on Thursday, July 18 . The ...
Strong demand for sensors, guidance systems, commercial fire and security products, along with its portfolio transformation strategy is likely to drive Honeywell's (HON) revenues.
The use of United Technologies' (UTX) GTF engines will allow JetSMART to enhance the operational efficiency of A320neo aircraft with reduced fuel burn, emissions and noise.
Honeywell (HON) will serve as an authorized value-added reseller for SmartSky's air-to-ground services, using 5G technologies for North American airlines.
Honeywell (HON) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Honeywell International Inc NYSE:HONView full report here! Summary * Perception of the company's creditworthiness is positive * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is extremely low for HON with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting HON. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding HON are favorable, with net inflows of $11.24 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. HON credit default swap spreads are near the lowest level of the last one year and indicate improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
New agreement with SmartSky provides Honeywell customers with the best and most extensive inflight connectivity services PARIS , June 18, 2019 /PRNewswire/ -- Honeywell (NYSE: HON) has been selected as ...
(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.
Danaher (DHR) stands to gain from solid product portfolio, acquisitive nature and shareholder-friendly policy. High costs and debts as well as forex woes remain concerning.
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Project Bee was supposedly a "dead" deal for Charlotte about a month before a closed-session meeting with City Council last fall.
Yahoo Finance's Adam Shapiro, Julie Hyman, and Brian Cheung join Hennion & Walsh Asset Management President & Chief Investment Officer Kevin Mahn and Fort Pitt Capital Group Portfolio Specialist Carter Henderson to discuss.