Honeywell International (HON) is an American technology and manufacturing company. It provides industry-specific solutions through four segments, including Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity. (See Insiders’ Hot Stocks on TipRanks)
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Let’s take a look at the company’s latest financial performance, corporate updates, and risk factors.
Q3 Financial Results
Honeywell reported revenue of $8.47 billion for Q3 2021. That increased from $7.80 billion in the same quarter last year but missed the consensus estimate of $8.65 billion. It posted adjusted EPS of $2.02, compared to $1.56 in the same quarter last year, and beat the consensus estimate of $1.99.
The company spent $1.5 billion on dividends, share repurchases, capital expenditures, and acquisitions in Q3. It plans to distribute a quarterly cash dividend of $0.98 per share on December 3.
For full-year 2021, Honeywell anticipates revenue in the range of $34.2 billion to $34.6 billion and adjusted EPS between $8.00 and $8.10. (See Honeywell stock charts on TipRanks).
Corporate updates
Honeywell has acquired Performix to expand its automation solutions for the life sciences industry. Performix offers manufacturing software to pharmaceutical and biotechnology companies.
Cambrian College has tapped Honeywell to upgrade its building technology to reduce carbon emissions and cut utility costs. The project is expected to save the college $480,000 in the first year.
Risk Factors
Honeywell has identified 20 risk factors, according to the new TipRanks Risk Factors tool. Since September 2021, the company has updated its risk profile with two new risk factors.
The company tells investors that President Joe Biden has ordered mandatory COVID-19 vaccinations of U.S.-based staff in companies that work on federal government contracts. Those employees need to be fully vaccinated by December 8. Honeywell worries that the mandatory vaccination order may result in the loss of key personnel and make it difficult to hire in the future. The company goes on to caution that labor challenges resulting from the vaccination order could have a significant adverse effect on its business and financial condition.
The majority of Honeywell’s risk factors fall under the Legal and Regulatory category, with 35% of the total risks. That is above the sector average of 23%.
Analysts’ Take
Deutsche Bank analyst Nicole Deblase recently reiterated a Buy rating on Honeywell stock but lowered the price target to $247 from $251. Deblase’s new price target suggests 13.54% upside potential.
Consensus among analysts is a Moderate Buy based on 4 Buys and 5 Holds. The average Honeywell price target of $237 implies 8.95% upside potential to current levels.
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