Diversified manufacturer Honeywell International Inc. (
) on Friday posted better-than-expected second quarter earnings and
raised its full-year outlook, citing improving demand in its short-
and long-cycle businesses.
The Morristown, NJ-based company reported second quarter net
income of $468 million, or 60 cents per share, compared with $450
million, or 60 cents per share, in the year-ago period.
Revenue jumped nearly 8% from last year, to $8.16 billion.
On average, Wall Street analysts expected a smaller profit of 57
cents per share, on lower revenue of $8 billion.
CEO Dave Cote commented, "We believe the recovery is happening,
with improving demand in both our short- and long-cycle
Looking ahead, the company boosted its full-year profit forecast
to a range of $2.40 to $2.50, up from a prior view of $2.30 to
$2.45. Wall Street is looking for $2.48 per share.
It also boosted its full-year revenue forecast to $32.4 billion
to $32.9 billion, which exceeds analyst estimates of $32.15
Honeywell shares rose 74 cents, or +1.7%, in premarket trading
The Bottom Line
We had recently removed shares of HON from our recommended list
back on May 19, when the stock was trading at $44.72. The company
has a 2.84% dividend yield, based on last night's closing stock
price of $42.66. The stock has technical support in the $38-$40
price area. If the shares can firm up, we see overhead resistance
around the $46-$47 price levels. We would remain on the sidelines
Honeywell International Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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