Honeywell International (NASDAQ: HON) revised its earnings guidance for the fiscal year 2025 on December 11, 2023. The company projected earnings per share (EPS) in the range of $9.700 to $9.800, significantly below the consensus estimate of $10.630. Additionally, Honeywell set its revenue expectations between $37.5 billion and $37.7 billion, falling short of the market consensus of $40.8 billion.
Alongside its long-term outlook, Honeywell updated its fourth-quarter 2025 guidance to an EPS of $2.480 to $2.580. These adjustments reflect the company’s response to current market conditions and operational challenges.
Analyst Ratings and Market Reactions
In light of these adjustments, several analysts have revised their ratings on Honeywell’s stock. Jefferies Financial Group decreased its price target from $230.00 to $220.00 on November 3. Similarly, Bank of America lowered its price objective significantly from $265.00 to $205.00, maintaining an “underperform” rating.
Conversely, BNP Paribas Exane initiated coverage on Honeywell with a “neutral” rating and set a price target of $195.00 in a report released on December 3. Analysts from Barclays also adjusted their price target slightly, from $270.00 to $269.00, while maintaining an “overweight” rating.
Overall, nine analysts rated Honeywell International’s stock as a Buy, nine assigned a Hold rating, and one analyst issued a Sell rating. According to data from MarketBeat, the average rating for Honeywell’s stock stands at “Hold,” with a consensus target price of $236.56.
Recent Earnings and Dividend Increase
Honeywell reported its latest earnings results on December 11, revealing an EPS of $2.25 for the quarter. The company’s net margin was reported at 15.07%, with a return on equity of 38.11%. The revenue for the quarter reached $8.95 billion.
For the fourth quarter of 2023, Honeywell has established its guidance at an EPS of $2.530 to $2.630, while the full-year guidance for 2023 is set between $9.100 and $9.200. Analysts anticipate an average EPS of $10.34 for the current fiscal year.
In addition to its earnings forecast, Honeywell announced an increase in its quarterly dividend, now set at $1.19 per share, up from $1.13. This quarterly dividend was distributed on December 5, with a record date of November 14. The new annualized dividend stands at $4.76, yielding approximately 2.4%, with a dividend payout ratio of 50.16%.
Institutional Investor Activity
Recent activity among institutional investors indicates increased interest in Honeywell’s stock. Hancock Whitney Corp raised its holdings by 3.6% during the third quarter, acquiring an additional 912 shares to reach a total of 26,529 shares. Saratoga Research & Investment Management grew its stake by 45.4%, now holding 84,226 shares valued at approximately $17.73 million.
Financial Engines Advisors L.L.C. and OmniStar Financial Group also increased their stakes, with the former boosting its holdings by 2.2% and the latter entering a new position valued at about $1.35 million. Morningstar Investment Management LLC made the most significant increase, raising its position by an impressive 1,106.1% during the same period.
Currently, institutional investors own approximately 75.91% of Honeywell International’s stock, reflecting strong confidence from major financial players in the company’s long-term prospects.
Honeywell International, a diversified multinational conglomerate, designs and manufactures a wide array of commercial and consumer products, alongside engineering services and aerospace systems. Its business platforms include Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions, underscoring its extensive operational reach across critical industries.
