Honeywell International Inc.
) is set to report first-quarter financial results before the
market opens on Apr 17, 2014.
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In the last-reported quarter, Honeywell's delivered a positive
earnings surprise of 1.64%. On an average, Honeywell has posted a
4.23% positive surprise in the last four quarters. Let's see how
things are shaping up for this quarter.
Factors to Consider This Quarter
Honeywell, a diversified conglomerate, is capitalizing on
improving end markets, continued expansion in high-growth regions
and consistent product innovation.
Its Automation and Control segment is rebounding and is expected
to improve further owing to a recovering housing market and
growth in commercial retrofit activity. Moreover, the company's
short-cycle operations, particularly Energy, Safety and Security,
and Turbo Technologies are gaining from recovering end markets.
We expect these segments to boost Honeywell's top line in the
upcoming quarter. However, its Aerospace segment might be a drag
on earnings as planned defense cuts, program delays and supply
chain constraints hurt its profitability.
Honeywell's subsidiary, UOP LLC, has recently been expanding its
operations by providing technology and modular equipment to
countries like China and Pakistan. The contracts are expected to
be accretive to earnings in the coming quarters. Honeywell has
been pursuing structural cost reduction strategies of late, and
these should translate to healthy margin expansion and enhance
Our proven model does not conclusively show that Honeywell is
likely to beat earnings this quarter as it does not have the
right combination of two key ingredients. That is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Expected Surprise Prediction, which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is 0.00%. This is because both the Most Accurate
estimate and the Zacks Consensus Estimate currently stand at
Honeywell's Zacks Rank #3 (Hold) when combined with a 0.00% ESP
makes surprise prediction difficult.
Other Stocks to Consider
Here are other companies you may want to consider as our model
shows that these have the right combination of elements to post
an earnings beat this season:
Myriad Genetics Inc.
), with earnings ESP of +10.87% and a Zacks Rank #1 (Strong Buy).
RenaissanceRe Holdings Ltd.
), with earnings ESP of +13.36% and a Zacks Rank #1.
E-Commerce China Dangdang Inc.
), with earnings ESP of +33.33% and a Zacks Rank #1.