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Market Overview

Earnings Preview: Honeywell International

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Honeywell International (NYSE:HON) announces its next round of earnings this Friday, April 23. Here is Benzinga's look at Honeywell International's Q1 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Honeywell International earnings will be near $1.8 per share on sales of $8.09 billion, according to analysts. Honeywell International EPS in the same period a year ago totaled $2.21. Sales were $8.46 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 18.55%. Revenue would be down 4.41% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 2 1.49 1.21 1.95
EPS Actual 2.07 1.56 1.26 2.21
Revenue Estimate 8.40 B 7.65 B 7.29 B 8.57 B
Revenue Actual 8.90 B 7.80 B 7.48 B 8.46 B

eps graph

Stock Performance

Shares of Honeywell International were trading at $230.65 as of April 21. Over the last 52-week period, shares are up 69.81%. Given that these returns are generally positive, long-term shareholders are probably happy 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