Honeywell International (NASDAQ: HON) has revised its earnings guidance for the fiscal year 2025, announcing an earnings per share (EPS) estimate of between $9.700 and $9.800. This adjustment contrasts sharply with the consensus estimate of $10.630 per share. The company also projected revenue between $37.5 billion and $37.7 billion, falling short of the consensus estimate of $40.8 billion.
In addition to the annual guidance, Honeywell updated its guidance for the fourth quarter of 2025, forecasting an EPS range of $2.480 to $2.580. These changes reflect ongoing adjustments amid shifting market conditions.
Analyst Ratings and Market Reactions
Recent analyses by various financial institutions have prompted changes in Honeywell’s stock outlook. Jefferies Financial Group reduced its price target from $230.00 to $220.00 in a report dated November 3. Conversely, BNP Paribas Exane initiated coverage with a “neutral” rating, setting a price objective of $195.00.
Other notable changes include Barclays, which lowered its price target slightly from $270.00 to $269.00, while maintaining an “overweight” rating. In a more critical stance, Bank of America downgraded its rating to “underperform” with a revised price objective of $205.00, down from $265.00.
Overall, nine analysts have rated Honeywell with a “Buy” rating, nine have given it a “Hold” rating, and one analyst has assigned a “Sell” rating. According to data from MarketBeat, the average rating currently stands at “Hold” with a consensus target price of $236.56.
Financial Performance and Dividend Update
Honeywell International recently reported its earnings results for the third quarter, disclosing an EPS of $2.25. The company achieved a net margin of 15.07% and a return on equity of 38.11%, with revenues amounting to $8.95 billion. For the fourth quarter of 2023, Honeywell has set an EPS guidance of $2.530 to $2.630 and a fiscal year 2023 EPS guidance of $9.100 to $9.200.
Additionally, Honeywell announced an increase in its quarterly dividend, now set at $1.19, which was paid on December 5. This marks an increase from the previous dividend of $1.13, representing an annualized dividend of $4.76 and a yield of 2.4%. The company’s current dividend payout ratio is 50.16%.
Institutional Investment Trends
Institutional investors have been active in adjusting their stakes in Honeywell. Hancock Whitney Corp increased its holdings by 3.6% in the third quarter, bringing its total to 26,529 shares valued at approximately $5.58 million. Similarly, Saratoga Research & Investment Management boosted its stake by 45.4%, now owning 84,226 shares worth around $17.73 million.
Other firms, including Financial Engines Advisors L.L.C. and Morningstar Investment Management LLC, have also made significant adjustments to their positions, with the latter increasing its stake by a remarkable 1,106.1%. Currently, institutional investors hold approximately 75.91% of Honeywell’s stock.
Honeywell International Inc. remains a diversified multinational conglomerate with significant operations in various sectors, including aerospace, building technologies, and performance materials. This latest earnings guidance and subsequent analyst responses reflect the ongoing complexities within the market and the company’s strategic adjustments.
