Honeywell Raises Full-Year Outlook Following Q2 Earnings Beat (HON)

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Diversified manufacturer Honeywell International Inc. ( HON ) 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 businesses."

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 billion.

Honeywell shares rose 74 cents, or +1.7%, in premarket trading Friday.

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 for now.

Honeywell International Inc. ( HON ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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