Honeywell International Analysis
Chart done on daily timeframe. Honeywell reported its first quarterly earnings this morning and beat Wall Street’s estimates. The company’s aerospace business shined the most, reflecting an 18% year over year growth, but industrial automation fell 13% year over year. The rise in aerospace demand and fall in other parts of the business caused Honeywell’s revenue to modestly grow at only about 2% from same quarter last year.
What matters most is the company’s outlook and guidance for the rest of this year. Vital Kapur, Honeywell’s CEO, was optimistic about the aerospace part of the business, citing opportunities in commercial, defense, and space crafts. The company did not raise its guidance, but they didn’t lower it either, so there wasn’t any surprises.
Honeywell is an old name in the game so it is passed the growth phase and has become more of a value stock. Investors hold this because they know they can expect consistency from the business and steady growth overtime. Their stock has been flat for about a year now, but a move is brewing. As investors hunt for value names that pay good divedends, Honeywell should start gaining more attention.