Honeywell International Inc

.

HON

is scheduled to report

second-quarter 2022 earnings numbers on Jul 28

, before market open.

The Zacks Consensus Estimate for HON’s second-quarter earnings has been revised downward by a penny in the past 90 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being approximately 2%.

Let’s see how things are shaping up for Honeywell this earnings season.

Factors to Note

Solid demand in the air transport and business aviation markets is likely to have boosted performance of the commercial aviation aftermarket business. With improvement in build rates, strength in the commercial aviation original equipment business is expected to have benefited the Aerospace segment’s performance. Recovery in the defense and space business, owing to stable U.S. and international defense spend volumes, is likely to have aided the Aerospace segment. The Zacks Consensus Estimate for Aerospace net sales for the second quarter indicates a 4.4% rise from the year-ago reported number.

Solid demand for building management systems, fire and security products and high backlog levels are expected to have aided the Building Technologies segment’s performance in the second quarter. The Zacks Consensus Estimate for Honeywell Building Technologies segment revenues suggests a 5.1% rise from the year-ago reported number.

Honeywell’s Performance Materials and Technologies segment is expected to have benefited from strength in process solutions business and advanced materials business. The consensus mark for Performance Materials and Technologies segment revenues hints at a nearly 1% rise from the year-ago reported figure.

However, the Safety and Productivity Solutions segment’s performance is likely to have been affected by low demand across its personal protective equipment and warehouse automation businesses. Segmental performance is also expected to have been hurt by weakness in the UOP business owing to suspended operations in Russia. The Zacks Consensus Estimate for Safety and Productivity Solutions segment revenues shows a 14.3% decline from the year-ago reported number.

Reduction in production capabilities due to supply chain woes, raw material cost inflation and labor challenges might have hurt Honeywell’s second-quarter performance. High cost of sales and selling, general and administrative expenses might have weighed on its bottom line in the to-be-reported quarter. Foreign currency-related headwinds are also likely to have impacted performance.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Honeywell this time around. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Earnings ESP

: Honeywell has an Earnings ESP of -0.13% as the Most Accurate Estimate is pegged at $2.02, lower than the Zacks Consensus Estimate of $2.03. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank

: Honeywell carries a Zacks Rank #4 (Sell).

Highlights of Q1 Earnings

Honeywell’s first-quarter 2022 adjusted earnings of $1.91 per share surpassed the Zacks Consensus Estimate of $1.86. Quarterly revenues of $8,376 million beat the consensus estimate of $8,350 million. Both the top and bottom lines dipped year over year due to supply-chain constraints, among other factors.

Stocks to Consider

Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

Crane Holdings


CR

has an Earnings ESP of +6.98% and a Zacks Rank #2. The company is slated to release second-quarter 2022 financial numbers on Jul 25.

The Zacks Consensus Estimate for Crane Holdings’ second-quarter earnings has been revised upward by 4.1% in the past 60 days. CR’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 22.2%.

Zebra Technologies


ZBRA

has an Earnings ESP of +2.15% and a Zacks Rank #3. The company is scheduled to release second-quarter 2022 earnings numbers on Aug 2.

The Zacks Consensus Estimate for Zebra Technologies’ second-quarter earnings has remained steady over the past 60 days. ZBRA’s earnings have trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 8.8%.

MRC Global


MRC

has an Earnings ESP of +30.27% and a Zacks Rank #1. The company is set to release second-quarter 2022 results on Aug 8.

The Zacks Consensus Estimate for MRC Global’s second-quarter earnings has been revised upward by 13.6% in the past 60 days. MRC’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while meeting estimates in one. The average surprise was 140.8%.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research