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Honeywell International's Earnings Outlook

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Honeywell International (NYSE:HON) unveils its next round of earnings this Friday, January 29. Here is Benzinga's everything-that-matters guide for the 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

Sell-side analysts expect Honeywell International's EPS to be near $2.0 on sales of $8.40 billion. In the same quarter last year, Honeywell International reported earnings per share of $2.06 on sales of $9.50 billion.

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

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, earnings would be down 2.91%. Revenue would be down 11.54% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.49 1.21 1.95 2.04
EPS Actual 1.56 1.26 2.21 2.06
Revenue Estimate 7.65 B 7.29 B 8.57 B 9.61 B
Revenue Actual 7.80 B 7.48 B 8.46 B 9.50 B

Stock Performance

Shares of Honeywell International were trading at $199.21 as of January 27. Over the last 52-week period, shares are up 16.68%. Given that these returns are generally positive, long-term shareholders should be content 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: BZI-EPEarnings