What to look for when Honeywell (HON) reports Q4 results

Honeywell International Inc. (NYSE: HON) is scheduled to report fourth quarter 2019 earnings results on Friday, January 31, before the market opens. Analysts have projected earnings of $2.04 per share on revenue of $9.6 billion. This compares to EPS of $1.91 on revenue of $9.7 billion reported a year earlier.

The topline results were hurt last quarter by the impacts of the spinoffs of two of its business divisions as well as currency translations. On an organic basis, sales grew 3% last quarter. Foreign currency translations are likely to impact revenues in the fourth quarter as well.

The Aerospace, Building Technologies, and Performance Materials and Technologies segments are likely to see growth in revenues helped by strong demand in defense, aviation, fire and building management products and process solutions services. Last quarter, sales increased across all these three segments on an organic basis.

The Safety and Productivity Solutions division saw weakness in sales due to lower sales volumes in productivity products and the impact of major systems project timing in Intelligrated. It remains to be seen if revenues have improved in the fourth quarter.

Also read: AT&T Q4 2019 Earnings Report

In December, Honeywell acquired Rebellion Photonics, a provider of visual gas monitoring solutions, for undisclosed terms. There was no change to the company’s full-year 2019 guidance due to the transaction.

In the third quarter of 2019, Honeywell beat earnings estimates while sales missed the mark. Sales fell 16% to $9.09 billion while adjusted EPS rose 2.4% to $2.08.

For the full year of 2019, Honeywell has guided for sales of $36.7 billion to $36.9 billion. Organic sales is expected to grow 4-5%. Adjusted EPS is expected to be $8.10-8.15.

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