Honeywell International Inc. (NASDAQ:HON) is a diversified technology and manufacturing company, operating in sectors such as aerospace, building technologies, performance materials, and safety solutions. Competing with giants like General Electric and Siemens, Honeywell is gearing up to release its third-quarter 2025 earnings on October 23, before the market opens.
Analysts have set their expectations for Honeywell's earnings per share (EPS) at $2.56, marking a slight year-over-year decline of 0.8%. This anticipated decrease comes despite a 2.2% downward revision in the consensus EPS estimate over the past 30 days, a factor that can significantly influence investor sentiment and stock performance. Historically, Honeywell has demonstrated an ability to surpass earnings expectations, boasting an average earnings surprise of 6.7% over the past four quarters.
The company's revenue for the quarter is projected to hit approximately $10.09 billion, indicating a 3.7% increase from the same period last year. This growth is likely fueled by robust demand in the aerospace and building automation sectors, although challenges such as higher costs and weaknesses in industrial automation could pose risks to Honeywell's quarterly margins.
Examining Honeywell's financial metrics offers further insight into its market position. The company's price-to-earnings (P/E) ratio stands at 23.31, with a price-to-sales ratio of 3.32. Its enterprise value to sales ratio is 4.00, while the enterprise value to operating cash flow ratio is 25.84. These figures underscore Honeywell's solid market valuation, though its debt-to-equity ratio of 2.34 highlights a considerable level of debt.
The forthcoming earnings report is poised to be a significant determinant of Honeywell's stock trajectory. Should the company outperform expectations, its stock is likely to ascend; conversely, underperformance could precipitate a decline. The management's commentary during the earnings call will be pivotal in evaluating the sustainability of any immediate price adjustments and future earnings outlooks, as emphasized by Zacks Investment Research.
