Key Stats for Honeywell Stock
- Price change for Honeywell stock -3%
- $HON Share Price as of Apr. 23: $214
- 52-Week High: $248
- $HON Stock Price Target: $252
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What Happened?
Honeywell (HON) stock dropped 3% on Thursday after the company delivered a mixed quarter and set Q2 guidance that disappointed Wall Street.
The earnings picture was split.
- Adjusted EPS came in at $2.45, beating the $2.32 estimate.
- But revenue of $9.14 billion missed the $9.29 billion consensus.
The Q2 guidance made things worse. Honeywell guided for EPS of $2.35–$2.45, well below the $2.56 expected by analysts. That gap is what sent Honeywell stock lower.
Two things are driving the near-term pressure.
- First, Aerospace had a rough start to the quarter. Supply chain issues affecting a few key mechanical parts slowed output in January and February.
- Management says the recovery started in March and is continuing into April, but the damage to Q1 numbers was already done.
- Second, the conflict in the Middle East is delaying shipments of high-margin services and catalyst reloads in the Process Automation segment.
- That’s hurting both revenue and margins in the short term.
On the positive side, Building Automation was a standout.
- Organic sales grew 8% — the fifth or sixth consecutive strong quarter for that segment.
- Data center demand, healthcare, and fire products are all driving results there.
- Orders across the company grew 7%, and backlog exceeded $38 billion.
- Those are encouraging signs for the second half.
Honeywell also confirmed that its Aerospace spin-off will complete on June 29. That’s a big milestone.
It effectively turns Honeywell into a pure-play automation company — a cleaner, more focused business going forward.
Full-year guidance was maintained. The company still expects adjusted EPS of $10.35–$10.65 and organic sales growth of 3–6%.
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What the Market Is Telling Us About Honeywell Stock
Honeywell stock was already up about 9% year-to-date heading into today. The Q2 guidance miss added more pressure on the stock.
The bull case here is straightforward. The Aerospace spin creates two focused companies. The backlog is strong. Building Automation keeps beating. And the headwinds in the Middle East are expected to fade in the second half.
Honeywell stock looks cheap relative to history if management delivers on its second-half recovery. But investors will need to see it to believe it.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
