Honeywell’s (HON) shares added more weight during early trading on Thursday after the diversified tech and manufacturing company released its third-quarter earnings for fiscal year 2025, exceeding Wall Street’s expectations.
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CEO Vimal Kapur noted that the split-off of Solstice Advanced Materials is expected to be completed at the end of this month.
Honeywell’s Revenue and EPS Beat Wall Street
The North Carolina-based business, which is splitting into three public companies focused, respectively, on automation, aerospace, and advanced materials, saw its revenue jump by about 7% to $10.40 billion. This beat analysts’ expectations of $10.16 billion.
In addition, Honeywell reported adjusted earnings per share of $2.82, surpassing analysts’ expectations of $2.57. Kapur said Honeywell achieved “another record high” increase in orders across its business segments, helping to fuel the growth.
The chief executive further noted that recent upgrades to its integrated offerings on the Honeywell Forge platform helped the company boost recurring revenues across its portfolio.
Honeywell Forge is a cloud-based industrial operations platform used across sectors such as manufacturing, building, and aerospace. The platform helps businesses to optimize their performance, improve safety, and enhance efficiency through features such as AI and Internet of Things technologies.
Honeywell Raises EPS Forecast but Cuts Revenue
Despite the split-up plan, Honeywell remains confident going into the future, raising its adjusted EPS guidance for the full fiscal year. The multinational conglomerate now expects to make between $10.60 and $10.70 per share, surpassing its earlier range. The new figures also surpass Wall Street’s predicted $10.54 per share.
At the same time, Honeywell trimmed its expected revenue and now hopes to achieve between $40.7 billion and $40.9 billion at the end of the current fiscal year. Yet, the upper range of the guidance manages to slightly exceed Wall Street’s $40.88 billion revenue consensus.
“We will remain focused on our compelling opportunities to deliver outcomes-based solutions to customers,” Kapur said.
Is Honeywell Stock a Good Buy Now?
Meanwhile, Wall Street remains cautious about Honeywell’s shares. According to TipRanks’ data, the conglomerate’s shares currently have a Moderate Buy rating based on six Buys and five Holds assigned by 11 analysts over the past three months.
However, the average HON price target of $250.27 points to more than 21% growth potential from the current level.
