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Charlotte, North Carolina-based Honeywell International Inc. (HON) operates in the aerospace technologies, industrial automation, building automation, and energy and sustainability solutions sectors. Valued at $132.7 billion by market cap, its business is aligned with three powerful megatrends - automation, the future of aviation and energy transition, underpinned by its Honeywell Accelerator operating system and Honeywell Forge IoT platform. The diversified industrial conglomerate is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Thursday, Oct. 23.
Ahead of the event, analysts expect HON to report a profit of $2.57 per share on a diluted basis, down marginally from $2.58 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect HON to report EPS of $10.57, up 6.9% from $9.89 in fiscal 2024. Its EPS is expected to rise 7.8% year-over-year to $11.39 in fiscal 2026.
HON stock has underperformed the S&P 500 Index’s ($SPX) 17.2% gains over the past 52 weeks, with shares up 2.6% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 14.5% gains over the same time frame.
HON's underperformance stems from a decline in sales driven by softness in warehouse and workflow solutions, as well as weakness in fluorine products.
On Jul. 24, HON shares closed down more than 6% after reporting its Q2 results. Its adjusted EPS of $2.75 surpassed the consensus estimate of $2.64. The company’s revenue was $10.4 billion, beating the consensus estimate of $10 billion.
Analysts’ consensus opinion on HON stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 12 advise a “Strong Buy” rating, and 11 give a “Hold.” HON’s average analyst price target is $254.25, indicating a potential upside of 21.7% from the current levels.
