Honeywell International Inc. HON is likely to witness top and bottom-line growth when it reports first-quarter 2024 results on Apr 25 before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $9 billion, which suggests growth of 1.6% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pinned at $2.18 per share, which has declined by a penny in the past 60 days. The figure indicates a jump of 5.3% from the figure reported in the prior-year quarter. The company’s bottom line came in line with  Zacks Consensus Estimate in the last reported quarter. It has a trailing four-quarter earnings surprise of 2.7%, on average. Zacks Investment Research

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In the past six months, HON’s shares have gained 7.6% compared with the industry’s growth of 3.7%.

Let’s see how things have shaped up for Honeywell this earnings season.

Key Factors and Estimates for Q1

Strength across Honeywell’s commercial aviation aftermarket business, driven by solid demand in the air transport and business aviation markets, is likely to have supplemented the top-line performance of its Aerospace segment in the first quarter. Also, strength in the company’s commercial aviation original equipment business, backed by improvement in build rates, is likely to have boosted its performance. Solid momentum in the defense and space business, owing to stable U.S. and international defense spend volumes, is expected to have been a tailwind. For the first quarter, we expect the company’s Aerospace segment revenues to increase 14% year over year to $3,545 million.

The Performance Materials and Technologies (“PMT”) segment is expected to generate a year-over-year increase in revenues, driven by strength in advanced materials, process solutions and HPS businesses. The segment’s operations are likely to have performed strongly, driven by solid petrochemical catalyst shipments, along with robust demand in the sustainable technology solutions business. However, lower volumes in the gas processing business might have been a spoilsport.

However, Honeywell’s Safety and Productivity Solutions segment is expected to put up a weak show in the to-be-reported quarter due to lower warehouse, workflow and productivity solutions volumes owing to persistent weakness in the warehouse automation market. Headwinds across sensing and safety technologies business are likely to affect its performance too.

Also, softness in the company’s short-cycle building products business, owing to lower orders, is expected to have dragged the Building Technologies segment’s results in the quarter. Nevertheless, strength in its building solutions business, is likely to have provided a relief. Our estimate for Building Technologies revenues is pegged at $1,477 million, indicating a 0.7% decline from the year-ago reported number.

Given HON’s extensive presence in international markets, foreign currency headwinds might have affected its profitability in the soon-to-be-reported quarter.



Honeywell International Inc. Price and EPS Surprise Honeywell International Inc. Price and EPS Surprise

Honeywell International Inc. price-eps-surprise | Honeywell International Inc. Quote

Earnings Whispers

Our proven model suggests an earnings beat for Honeywell this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.

Earnings ESP: Honeywell has an Earnings ESP of +0.87% as the Most Accurate Estimate is pegged at $2.20, which is higher than the Zacks Consensus Estimate of $2.18. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HON carries a Zacks Rank #3.

Other Stocks With Favorable Combination

Here are three other companies that you may want to consider, as our model shows that these have the right combination of elements to post  earnings beat in the upcoming release.

Danaher Corporation DHR has an Earnings ESP of +0.11% and carries a Zacks Rank #3. It is slated to release first-quarter results on Apr 23. You can see the complete list of today’s Zacks #1 Rank stocks here.

DHR delivered a trailing four-quarter earnings surprise of 6.8%, on average. The stock has risen 15.4% in the past six months.

Allegion plc ALLE has an Earnings ESP of +5.69% and a Zacks Rank of 3. The company is slated to release first-quarter results on Apr 25.

Allegion delivered a trailing four-quarter earnings surprise of 10.4%, on average. The stock has risen 29.3% in the past six months.

ITT Inc. ITT has an Earnings ESP of +0.37% and a Zacks Rank #3. It is slated to release first-quarter results on May 2.

ITT delivered a trailing four-quarter earnings surprise of 7%, on average. The stock has risen 33.7% in the past six months.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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