New 52-Week High Follows Honeywell Earnings Report

January 25, 2013 by Paul Ausick

global economy
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Honeywell International Inc. (NYSE: HON) reported fourth-quarter and full-year 2012 results before markets opened this morning. For the quarter, the conglomerate posted adjusted diluted earnings per share (EPS) of $1.10 on revenues of $9.58 billion. In the same period a year ago, the company reported EPS of $1.05 on revenues of $9.47 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.09 and $9.51 billion in revenues.

For the full year, Honeywell posted EPS of $4.48 on revenues of $37.67 billion, compared with EPS of $4.05 on revenues of $36.53 billion in 2011. The consensus estimate called for EPS of $4.48 on revenues of $37.6 billion.

On a GAAP basis, the company reported fourth-quarter EPS of $0.32 and full-year EPS of $3.69.

The company’s CEO said:

In a weak global economy, we grew sales 3% and earnings by 11%, while expanding margins to record levels and continuing to generate strong cash flow. … We’ve also maintained a strong long-cycle backlog, now a record $15.8 billion, with new platform wins across many of our businesses last year.

The company offered no guidance in its earnings release, but the consensus estimate for the first quarter calls for EPS of $1.13 on revenues of $9.52 billion. For the full year, the EPS estimate is $4.92 on revenues of $39.34 billion.

Honeywell’s highest sales come from its automation and control segment, which posted a year-over-year gain of 3% in sales and a 1.1% boost in margins, to 15.5%. The highest growth came from its performance materials and technologies segment, which experienced a revenue boost of 8% to a total of $1.55 billion, even though margins fell by 2% to 13.6%. Both the aerospace and transportation segments posted revenue declines.

Honeywell’s shares are up about 2.5% in premarket trading at $69.95, a new 52-week high if it holds. The current 52-week range is $52.21 to $69.21. Thomson Reuters had a consensus analyst price target of around $71.60 before today’s report.

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