|Bid||178.00 x 800|
|Ask||181.50 x 4000|
|Day's range||179.98 - 181.86|
|52-week range||150.38 - 184.06|
|Beta (5Y monthly)||1.15|
|PE ratio (TTM)||21.50|
|Earnings date||15 Apr 2020 - 19 Apr 2020|
|Forward dividend & yield||3.60 (2.00%)|
|Ex-dividend date||13 Nov 2019|
|1y target est||190.85|
The Zacks Analyst Blog Highlights: Mastercard, Comcast, Honeywell International, QUALCOMM and Dominion Energy
Coronavirus is ravaging China and several other countries. With no cure yet, health officials are struggling to stop its spread. Demand for medical supplies like masks is up manifold.
Retailers across the U.S. are seeing increased demand for face masks amid the coronavirus outbreak, despite 'no evidence' that they help protect against it.
(Bloomberg Opinion) -- The stock market’s blind optimism is colliding with industrial CEOs’ realism. Caterpillar Inc. and Honeywell International Inc. rounded out a busy week of earnings for the manufacturing sector on Friday, with both companies pointing to a continuing slide in growth in 2020 that flies in the face of expectations for a swift rebound following the signing of the U.S.-China trade deal.“We expect continued global uncertainty” in 2020, Caterpillar CEO Jim Umpleby said in a statement. That will push demand among end-users of its equipment down as much as 9% and encourage dealers to continue chipping away at existing inventory stockpiles rather than replenish them. The company predicted a decline in residential and non-residential construction markets in North America and continued weakness in oil and gas, offset somewhat by a pickup in mining equipment, calls that have wide-reaching implications for much of the industrial sector. Sales in China may decline as much as 5%, Chief Financial Officer Andrew Bonfield told Bloomberg News. Honeywell’s earnings guidance was in line with analysts’ estimates, but the range was fairly wide for the company, with a 40-cent swing between the best and worst case. Honeywell is “remaining cautious” on the macroeconomic outlook and the risks to its businesses that are among the first to reflect changes in activity. It warned sales may be flat in 2020 after backing out the impact of M&A and currency swings.Honeywell has a history of being conservative, but you’ve heard comments like this from a variety of industrial CEOs over the past few weeks, including CSX Corp.’s Jim Foote, W.W. Grainger Inc.’s DG Macpherson, DuPont de Nemours Inc.’s Marc Doyle and 3M Co.’s Mike Roman. Most are expecting the growth environment to remain lackluster – and for some markets, to get a bit worse – in the first half of the year before improving in the back end. But for many companies, that “improvement” has more to do with easier comparisons than any true demand spike. We’ve also seen this movie before, and forecasts for a back-end-weighted recovery rarely play out as hoped. Heading into the year, CEOs listed the risk of a recession as their top concern for 2020, according to a global Conference Board survey. While the trade deal improved sentiment, corporate profits need to pick back up to drive increased spending, note Bloomberg Economists Andrew Husby and Yelena Shulyatyeva. There are a variety of complicating factors on the horizon, including the U.S. presidential election and potentially the ramifications of the burgeoning coronavirus epidemic. And don’t forget, U.S. tariffs remain in place on some $360 billion of Chinese goods.For now, business investment remains muted, with orders for non-military equipment falling 0.9% in December, excluding aircraft, according to data from the Commerce Department released this week. Arguably, one benefit of elevated stock prices is that buybacks are untenable and that may drive more CEOs to put their money to work on capital investments once the uncertainty clears. Honeywell plans to do both, buying back a minimum of 1% of its shares and spending as much much as $150 million on capital expenditures in 2020. But for industrial companies as a group, earnings gains appear to rely more heavily on continued cost-cutting and productivity improvements rather than true fundamental growth.Caterpillar, which is currently predicting a second straight year-over-year decline in profit, said Friday it has a $200 million placeholder for strategic restructuring and is “prepared to respond quickly to any positive or negative changes in customer demand.” There has also been a troubling increase in below-the-line benefits and earnings adjustments, even at the typically clean Honeywell. Below-the-line items are expected to be as much as a $250 million benefit in 2020, compared with a $57 million drag in 2019, the company said. This impacts perceived quality, notes Gordon Haskett analyst John Inch.And yet investors seem only mildly concerned. After initially sliding as much as 3.2%, Caterpillar shares were at times little changed and were down only about 1.5% as of mid-morning. Expectations were higher at Honeywell and that stock was down about 2%, but it’s still within spitting distance of an all-time high hit earlier this month. Investors may have the luxury of being more optimistic than CEOs, but I’d listen to the guys who have to make the actual decisions when it comes to hiring and spending. And those guys (yes, they’re all men) are still waving the yellow flag of caution. To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Impressive traction in its aerospace and process solutions businesses, and solid demand for commercial fire products drive Honeywell's (HON) Q4 results.
Investing.com - Honeywell (NYSE:HON) reported on Friday fourth quarter earnings that beat analysts' forecasts and revenue that fell short of expectations.
(Bloomberg Opinion) -- General Electric Co.’s shares have traded more on hope than hard math over the past year, but it looks like CEO Larry Culp’s turnaround efforts are starting to yield real results.Free cash flow is the key number to watch when the company reports earnings, and GE said Wednesday that it generated $2.3 billion from its industrial businesses over the course of 2019. That exceeded the high end of GE’s guidance range, which was updated twice over the course of the year from an initial call in March for free cash flow to be at best zero. Was Culp sandbagging expectations, or setting a low bar to start with and artfully managing to a positive surprise? (1) It’s a fine line, but either way, the strategy worked. GE shares climbed more than 50% in 2019 and shareholders were still wowed enough by Wednesday’s results to send the stock up an additional 10%.A lot of that optimism has to do with GE’s forecast for 2020. The company is projecting free cash flow will at least roughly match 2019’s performance and potentially rise to as high as $4 billion. That would still fall below what GE generated in 2018 amid depressed results, but would represent significant progress nonetheless, and exceeds most analysts’ estimates. The company plans to hold a meeting with investors this coming March to lay out its outlook in more detail. On the earnings call, however, Culp let a few details slip.The beleaguered power and renewables units will likely continue to burn cash in 2020, with power improving from the negative $1.5 billion in cash flow in 2019 and renewables seeing a deterioration from the negative $1 billion the unit saw last year. Aviation will be flat to up from the $4.4 billion level of 2019, with the return of Boeing Co.’s 737 Max the biggest source of variability. That leaves health care as the one question mark. We already know the unit will be losing cash flow from the biopharma business that’s being sold to Danaher Corp. Without biopharma, the health-care division would have generated about $1.2 billion in cash flow in 2019 and GE had previously guided for an increase in 2020. Taking all of that together, GE should be able to fall well within its guidance range, but the potential to rack up a similar string of outsize positive surprises is arguably more limited this year.Boeing’s Max is the biggest source of volatility for GE’s guidance, Culp said on the earnings call, and the company is currently modeling for a mid-2020 return of the jet, in line with Boeing’s most recent “best estimate.” Boeing also reported earnings today and, based on that timeline, announced a fresh $5.2 billion in charges tied to compensation for airlines and additional production costs. The company also said it anticipates $4 billion in “abnormal costs” for restarting production of the jet. That brings the total bill for the Max crisis to more than $18 billion, before accounting for any fines or legal penalties from numerous lawsuits and government investigations.GE makes the engines for the Max through its CFM International joint venture with Safran SA and expects to see its shipment rate cut in half in 2020 amid the production halt. Asked about the $1.4 billion drag on free cash flow from the Max grounding in 2019, outgoing Chief Financial Officer Jamie Miller implied free cash flow would have been that much higher without that impact. In that case, arguably 2020 results could also be higher, but there are a lot of moving pieces here and it feels like GE is being more prudent than deliberately conservative.The shift from optics to fundamentals is a welcome one. Culp’s task now is to keep the momentum going. In contrast to this time last year — when expectations could hardly have been much lower for GE — there’s now a fair amount of optimism reflected in the shares. After the stock pop on Wednesday, the company is currently valued at about 28 times its expected 2020 industrial free cash flow of at most $4 billion. That compares with about 20 times at Honeywell International Inc. and about 18 times for Emerson Electric Co. Put another way, much of GE’s anticipated progress in this multi-year turnaround is already priced in to the stock. But so far, Culp has proved the skeptics wrong and the optimists justified. So maybe there’s more room yet for hope.(1) To put that in perspective, consider that about a month before GE gave its initial comments on 2019, uber-bear JPMorgan Chase & Co. analyst Steve Tusa was forecasting $2.5 billion in industrial free cash flow for 2019 -- meaning the actual results are actually weaker than what even he had expected heading into the year.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Verizon (VZ) has teamed up with Honeywell (HON) to help utilities speed up and simplify the deployment of new communication-enabled, intelligent sensors and controls for the smart electric grid. By integrating Verizon’s Managed Connectivity LTE solutions into Honeywell’s next-generation smart meters and other electric, gas, and water solutions, the two companies will drive energy savings by more quickly deploying smart electric grid technologies.
Danaher's (DHR) fourth-quarter earnings and organic sales results are expected to reflect gains from strong Diagnostics and Life Sciences segments. High costs and forex woes might have ailed.
General Electric's (GE) Power segment's fourth-quarter results are likely to reflect the adverse impacts of prevailing internal and external challenges. Initiatives to restructure the power portfolio might have benefitted.
General Electric's (GE) Aviation segment's fourth-quarter results are expected to reflect gains from solid demand for LEAP engine. Healthy onshore business might have aided Renewable Energy.
General Electric's (GE) fourth-quarter results are likely to reflect gains from lower debts, restructuring actions and growth in Aviation. Issues in Power and margin problems of Renewable Energy might have ailed.
Weakness in the Carrier segment and rising costs are likely to be reflected in United Technologies' (UTX) Q4 results. Strong commercial aftermarket and military businesses are likely to have aided it.
3M's (MMM) fourth-quarter 2019 results are likely to reflect gains from buyouts, solid products and cost-saving actions. Forex woes and end-market weakness might have been spoilsports.