Market Overview

Earnings Preview for Honeywell International


Honeywell International (NYSE: HON) announces its next round of earnings this Friday, October 30. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Honeywell International reporting earnings of $1.49 per share on revenue of $7.65 billion. In the same quarter last year, Honeywell International reported earnings per share of $2.08 on revenue of $9.09 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 28.37% decrease in the company's earnings. Sales would have fallen 15.8% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.21 1.95 2.04 2.01
EPS Actual 1.26 2.21 2.06 2.08
Revenue Estimate 7.29 B 8.57 B 9.61 B 9.11 B
Revenue Actual 7.48 B 8.46 B 9.50 B 9.09 B

Stock Performance

Over the past 52-week period, shares of Honeywell International have declined 8.87%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Honeywell International is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: Earnings