Honeywell Earnings Preview: Mixed Analyst Sentiment Ahead of Q3 Report
Honeywell International Inc. (HON) faces divergent analyst views as it approaches its October 23 earnings release. The industrial conglomerate has beaten earnings estimates for 16 consecutive quarters, yet Wall Street remains divided on its prospects. Bank of America maintains a Buy rating despite cutting its price target to $265, citing balance sheet adjustments from the Solstice spin-off. JPMorgan takes a more cautious stance, reducing its target to $212 with a Neutral rating.
The market expects $2.57 EPS on $10.15 billion revenue—a marginal earnings decline year-over-year despite projected sales growth. Honeywell's consistent earnings outperformance creates an intriguing setup for traders, particularly given the stock's 8% year-to-date underperformance versus the S&P 500. The Solstice divestiture adds complexity to guidance interpretation, with $2 billion in payment transfers partially offsetting lost revenue streams.
