Honeywell’s Earnings Will Provide a Look at Key Industrial Markets

Text size Honeywell makes radar systems and drones in its aerospace division. Aerospace sales are expected to grow 8% in 2023 as the effects of Covid fade. Caitlin O’Hara/Bloomberg Honeywell’s coming 2023 guidance should give investors an important look into several key industrial markets in 2023. They could boost Honeywell’s stock too. The conglomerate reports fourth-quarter earnings Thursday morning. Wall Street is looking for earnings per share of $2.51 from $9.3 billion in sales. In the fourth quarter of 2021, Honeywell (ticker: HON) reported $2.09 a share from $8.7 billion in sales. Looking ahead, Wall Street expects Honeywell to generate earnings per share of $9.14 from sales of $37 billion in 2023. Earnings and sales are expected to rise about 4.5% and 4.2%, respectively. Sales in Honeywell’s aerospace division are expected to rise about 8% in 2023, as global air traffic continues to recover from Covid-induced declines. Sales at Honeywell’s commercial buildings are expected to rise about 5%. Sales of energy-linked businesses are expected to rise about 6% in 2023 after rising 7% in 2022. Sales in the company’s safety and productivity solutions business are expected to drop about 4%. That business makes N-95 masks for Covid protection among many other things. Mask sales have been falling. Options markets imply shares will move about 3%, up or down, following earnings. Shares moved an average of 4%, up or down, following the past four quarterly reports. Shares have risen three times and fallen once. Management hosts a conference call at 8:30 am Eastern time to discuss results. Coming into earnings, Honeywell stock is down about 4% year to date. Shares are up 1% over the past 12 months thought. That’s about 10 percentage points better than the S&P 500 and about 5 percentage points better than the Dow Jones Industrial Average. Write to Al Root at

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