Honeywell Beats and Raises, But Cautious on Outlook
📈 Honeywell reported strong Q1 earnings, beating analyst estimates with adjusted EPS of $2.51 (vs. $2.21 avg est.) and raising its full-year EPS forecast midpoint by 5 cents to $10.20-$10.50.
📊 Sales increased nearly 8% year-over-year to $9.8 billion, also surpassing analyst expectations of $9.6 billion.
⚠️ Despite the positive results and raised guidance, Honeywell expressed caution about the future, slightly reducing the upper end of its sales and margin forecasts due to the unpredictable global demand environment caused by tariffs.
Honeywell’s Steady Path, Is It Poised for a Breakout?
📈 Honeywell showed strong revenue growth until 2018 but has faced a correction since; it now appears to be attempting a recovery.
💰 The company actively repurchases shares, reducing the count significantly since 2004, though recent buybacks seem funded by increased debt.
⚖️ Its forward P/E ratio of 19 is slightly above its historical average of 17, suggesting the valuation might not be cheap, potentially warranting patience for a better entry point around 14-15 P/E.
