Honeywell International’s Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Honeywell International (NYSE:HON) will unveil its latest earnings on Wednesday, July 18, 2012. Honeywell International is a technology and manufacturing company which offers aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers and automotive products.

Honeywell International Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.11 per share, a rise of 11% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.09. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.11 during the last month. For the year, analysts are projecting net income of $4.49 per share, a rise of 18.5% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at profit of $1.04 a share versus the estimate of net income of 99 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose 16.7% to $823 million ($1.04 a share) from $705 million (88 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.5% to $9.31 billion from $8.91 billion.

Stock Price Performance: Between April 17, 2012 and July 12, 2012, the stock price fell $5.33 (-9%), from $58.93 to $53.60. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011, when shares rose for eight straight days, increasing 14.6% (+$6.17) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 5.7% (-$3.34) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 5.2% in revenue from the year-earlier quarter to $9.56 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.3% in the second quarter of the last fiscal year, 10.8% in the third quarter of the last fiscal year and 4.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.31 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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