Honeywell's Long-term View - Analyst Blog

By Zacks Equity Research,

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Honeywell International Inc. ( HON ) recently declared its long-term outlook while reaffirming 2012 guidance and narrowing its first quarter 2012 guidance. The company aims to achieve its 2014 sales guidance of $41 billion to $45 billion and segment margin of 16% to 18% based on its good financial and operational performance over the past ten years.

The company maintained its 2012 financial guidance of earnings per share of $4.25 to $4.50. The company, however, narrowed its first-quarter 2012 earnings guidance of $0.93 to $0.98 per share  to $0.96 to $0.98 per share.

Honeywell's strong product portfolio and expanded global presence developed over the past ten years well position it to achieve its guidance. The company maintains its strategy of Great Positions in Good Industries, One Honeywell and the Five Initiatives - Growth, Productivity, Cash, People and the Enablers. Based on these, the company is confident of performing well as it moves ahead.

For further expansion, the company is focused on growth factors, such as investments in new products, technology demarcation, expansion in the emerging markets along with initiatives in key processes. Honeywell's short-cycle businesses as well as its commercial aerospace spares and residential and commercial retrofit businesses are performing impressively and are expected to support the company's future growth outlook.

However, a change in the U.S. government's defense and aerospace funding could adversely impact sales of Aerospace's defense and space-related products and services.

Based in Morris Township, N.J., Honeywell International Inc. is a Fortune 100 company providing technical and manufacturing support to customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. The major competitors of Honeywell are BorgWarner Inc. ( BWA ), United Technologies Corp. ( UTX ) and Johnson Controls Inc. ( JCI ).

We maintain a Zacks #3 Rank (Hold recommendation) over the next one-to-three months on Honeywell.

BORG WARNER INC ( BWA ): Free Stock Analysis Report
HONEYWELL INTL ( HON ): Free Stock Analysis Report
JOHNSON CONTROL ( JCI ): Free Stock Analysis Report
UTD TECHS CORP ( UTX ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BWA , HON , JCI , UTX

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