The company is expected to see solid organic growth which will fuel revenue growth. Revenue growth is anticipated across all segments helped by favorable trends in the defense and homebuilding sectors, strong demand, new contracts and orders as well as new products.
Last quarter, Honeywell said it expects to complete the spin-off of its Transportation Systems and Homes businesses by the end of this year. In June, the company said it expects to close the Transportation Systems business spinoff before the end of the third quarter. Honeywell also decided to change the name of its Transportation business to Garrett Motion Inc. following the spinoff. The Homes business spinoff is expected to be completed by year-end, as announced previously.
Honeywell announced new executive appointments in relation to the spinoff. The company appointed Olivier Rabiller as President and CEO and Alessandro Gili as CFO of the Transportation Systems business. Michael Nefkens was named President and CEO of the Homes business.
Honeywell’s stock has dropped more than 2% so far this year. Although the company said that the tariffs on steel and aluminum have not impacted its business heavily, investors do not seem convinced. If Honeywell’s second-quarter results are in line with expectations, the stock might recover.
Honeywell appears to be doing well so far in its operations and the general analyst sentiment on this stock is bullish. Most analysts have rated the stock as BUY and HOLD with none rating it SELL.
