Honeywell International (NASDAQ:HON) Trading 7.3% Higher After Better-Than-Expected Earnings

Key Points

• Honeywell International shares jumped 7.3% after the company reported better-than-expected quarterly earnings and revenue, with adjusted EPS of $1.95 versus the $1.80 estimate and revenue of $9.72 billion.
• The company’s results were supported by resilient demand in industrial and building automation, along with about 4% order growth and a backlog of roughly $38 billion that points to solid demand visibility.
• Despite the strong quarter, Honeywell’s forward guidance disappointed: Q3 and Q4 EPS outlooks came in below Wall Street expectations, and Q3 revenue guidance also missed estimates.

Honeywell International Inc. (NASDAQ:HON - Get Free Report)'s share price rose 7.3% on Thursday following a better than expected earnings announcement. The company traded as high as $248.84 and last traded at $249.9450. Approximately 1,061,911 shares were traded during mid-day trading, a decline of 75% from the average daily volume of 4,260,211 shares. The stock had previously closed at $232.99.

The conglomerate reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.80 by $0.15. Honeywell International had a net margin of 11.37% and a return on equity of 42.29%. The business had revenue of $9.72 billion for the quarter, compared to analysts' expectations of $5.02 billion. During the same period in the previous year, the company earned $1.77 earnings per share. The firm's revenue for the quarter was up 3.4% compared to the same quarter last year. Honeywell International has set its Q3 2026 guidance at 2.050-2.200 EPS and its Q4 2026 guidance at 2.280-2.430 EPS.

Honeywell International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 15th were paid a $1.19 dividend. The ex-dividend date was Friday, May 15th. This represents a $4.76 annualized dividend and a dividend yield of 1.9%. Honeywell International's payout ratio is presently 67.42%.

Key Honeywell International News

Here are the key news stories impacting Honeywell International this week:

• Positive Sentiment: Honeywell beat Q2 expectations, reporting adjusted EPS of $1.95 versus the $1.80 consensus and revenue of $9.72 billion, helped by resilient demand in industrial and building automation and 4% order growth. Honeywell International Inc. (HON) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company said its backlog is about $38 billion, suggesting healthy demand visibility even as it completes a major portfolio reshaping. Honeywell Technologies Reports Second Quarter Results
• Neutral Sentiment: Honeywell’s first post-breakup results showed higher profit and sales, but the market is still digesting the separation of Aerospace Technologies, which changes how investors should compare results versus prior periods. Reuters article on Honeywell Technologies profit rise
• Neutral Sentiment: Honeywell reaffirmed its full-year sales outlook, which may reassure investors about the core business, but it did not materially improve near-term uncertainty. Honeywell International (HON) Undervalued As It Reaffirms 2026 Guidance?
• Negative Sentiment: Q3 and Q4 EPS guidance came in below Wall Street’s expectations, and Q3 revenue guidance of $4.9 billion to $5.0 billion also missed estimates, which could pressure the stock despite the Q2 beat. Barron's article on Honeywell Technologies and aerospace spinoff

Analyst Upgrades and Downgrades

A number of brokerages recently commented on HON. Weiss Ratings cut shares of Honeywell International from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 29th. Sanford C. Bernstein started coverage on shares of Honeywell International in a research note on Wednesday, June 10th. They issued a "market perform" rating and a $233.00 price objective for the company. Wolfe Research upgraded Honeywell International to a "hold" rating in a research report on Monday, June 29th. Rothschild & Co Redburn cut their price target on Honeywell International from $235.00 to $225.00 and set a "neutral" rating for the company in a report on Thursday, May 21st. Finally, Mizuho lifted their price target on Honeywell International from $240.00 to $480.00 and gave the company an "outperform" rating in a research report on Wednesday, July 1st. Thirteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Honeywell International has an average rating of "Hold" and a consensus price target of $257.79.

Hedge Funds Weigh In On Honeywell International

Institutional investors have recently modified their holdings of the company. Cardinal Capital Management Inc. lifted its position in Honeywell International by 6.1% in the fourth quarter. Cardinal Capital Management Inc. now owns 138,726 shares of the conglomerate's stock valued at $27,064,000 after purchasing an additional 7,929 shares during the period. Douglas Lane & Associates LLC increased its position in Honeywell International by 56.1% during the 4th quarter. Douglas Lane & Associates LLC now owns 72,783 shares of the conglomerate's stock worth $14,199,000 after purchasing an additional 26,162 shares during the period. Exencial Wealth Advisors LLC raised its stake in shares of Honeywell International by 36.6% during the 4th quarter. Exencial Wealth Advisors LLC now owns 81,211 shares of the conglomerate's stock worth $15,844,000 after buying an additional 21,770 shares in the last quarter. Valley Wealth Managers Inc. raised its stake in shares of Honeywell International by 33.9% during the 4th quarter. Valley Wealth Managers Inc. now owns 114,016 shares of the conglomerate's stock worth $22,243,000 after buying an additional 28,875 shares in the last quarter. Finally, MADDEN SECURITIES Corp acquired a new stake in shares of Honeywell International in the 4th quarter valued at approximately $1,418,000. 75.91% of the stock is currently owned by institutional investors.

Honeywell International Stock Up 6.4%

The company has a debt-to-equity ratio of 1.98, a quick ratio of 1.10 and a current ratio of 1.39. The firm has a market capitalization of $78.54 billion, a price-to-earnings ratio of 17.56, a PEG ratio of 5.18 and a beta of 0.90. The firm has a fifty day moving average price of $224.98 and a 200 day moving average price of $226.15.

Honeywell International Company Profile

Honeywell International Inc is a diversified, publicly traded multinational conglomerate NASDAQ: HON that designs and manufactures a wide range of commercial and consumer products, engineering services and aerospace systems. The company operates through major business platforms that historically include Aerospace; Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. Its portfolio spans avionics and propulsion systems, building controls and HVAC equipment, process technologies and advanced materials, industrial automation software, and personal protective equipment and scanning solutions.

Honeywell's aerospace business supplies aircraft manufacturers and operators with engines and auxiliary power units, avionics, flight safety systems and aftermarket services.

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