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Honeywell Reaffirms Q2 and Full-Year 2019 Outlook

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Honeywell reaffirms guidance

In a press release on May 14, Honeywell (HON) provided insight into its second-quarter and the full-year earnings. The company also discussed future sales growth, margin expansion, free cash flow growth, and an outline for the next phase of transformation. At the same time, Honeywell reaffirmed the second-quarter earnings per share guidance of $2.05 to $2.10 and the full-year earnings per share guidance of $7.90 to $8.15.

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In the first quarter of 2019, HON reported adjusted EPS of $1.92. Sales declined by 15%, mainly due to spin-offs. HON’s chair and CEO, Darius Adamczyk, said, “Today, we embark on the next phase of Honeywell’s transformation with a strengthened and unified Honeywell Connected Enterprise, a vision for creating the supply chain of the future, and a plan to create a fully digitized internal organization. We remain confident in our long-term financial framework and in Honeywell’s ability to deliver shareowner value in 2019 and for many years to come. This is an exciting time to be part of Honeywell, whether you are an employee, a customer, or a shareowner.”

Stock price update

On May 14, 2019, HON was up by ~0.8% and closed at $168.16. On a year-to-date basis, HON has gained 28.6%. HON has managed to outperform the S&P 500 (SPY), which has gained 14.0%. HON’s peers United Technologies (UTX), Textron (TXT), and Boeing (BA) have gained 27.6%, 9.7%, and 8.4%, respectively. HON’s 14-day relative strength index (or RSI) is at 52, indicating that the stock is neither overbought nor oversold.

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