Honeywell International Inc. HON is scheduled to release first-quarter 2025 results on April 29, before market open.

The Zacks Consensus Estimate for HON’s first-quarter revenues is pegged at $9.6 billion, indicating growth of 5.2% from the prior-year quarter’s figure. The consensus mark for earnings is pinned at $2.21 per share, which has edged down 2.2% in the past 60 days. The figure indicates a decline of 1.8% from the year-ago quarter's figure.

The company delivered better-than-expected results in each of the trailing four quarters, the earnings surprise being 4.1% on average. In the last reported quarter, its bottom line beat the consensus estimate by 3.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let us see how things have shaped up for Honeywell this earnings season.

Factors Likely to Have Shaped HON’s Quarterly Performance

Strength across Honeywell’s commercial aviation aftermarket business, driven by strong demand in the air transport and business aviation markets, is expected to have supplemented the top-line performance of its Aerospace Technologies segment. Strength in the defense and space business, owing to stable U.S. and international defense spending volumes, is likely to have been a tailwind as well. We expect the segment’s revenues to increase 9.7% year over year to $4.02 billion in the first quarter.

The Energy and Sustainability Solutions segment is expected to have witnessed a year-over-year increase in revenues, driven by strength in the Universal Oil Products business, due to higher demand for gas processing solutions and equipment.

Solid demand for its products and solutions, led by increasing building projects, particularly in North America and the Middle East, is expected to have driven the Building Automation segment’s performance. Increasing order rates in data centers and healthcare businesses are also anticipated to have aided its performance. We expect the segment’s revenues to increase 6.5% year over year to $1.52 billion in the first quarter.

However, Honeywell’s Industrial Automation Solutions segment is expected to have put up a weak show in the first quarter due to persistent weakness in its warehouse and workflow solutions and sensing and safety technologies businesses, owing to lower demand for projects.

Also, continued softness in the warehouse automation business, owing to lower investments in the market, is likely to weigh on its results. For the first quarter, our estimate for revenues from the Industrial Automation segment is pegged at $2.46 billion, indicating a year-over-year decline of 0.8%.

High operating costs are likely to have posed a threat to HON’s bottom line. The company’s investments in digital infrastructure and business integration activities are expected to have pushed up its operating expenses, which are likely to have reflected in its margins.

HON has considerable exposure to overseas markets. Given its extensive presence in international markets, foreign currency headwinds are likely to have affected its top line.

Earnings Whispers

Our proven model predicts an earnings beat for HON this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 

Earnings ESP: HON has an Earnings ESP of +0.34% as the Most Accurate Estimate is pegged at $2.21 per share, which is higher than the Zacks Consensus Estimate of $2.20. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HON currently carries a Zacks Rank of 3.

Other Stocks to Consider

Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Illinois Tool Works Inc. ITW has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is slated to release first-quarter 2025 results on April 30. Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.6%.

AptarGroup, Inc. ATR has an Earnings ESP of +0.17% and a Zacks Rank of 3 at present. The company is scheduled to release first-quarter 2025 results on May 1.

ATR’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.3%.

Caterpillar Inc. CAT has an Earnings ESP of +0.16% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2025 results on April 30.

Caterpillar’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.5%.

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