✈️ Honeywell International (NASDAQ: HON) recently saw its stock take a hit following a lowered 2024 sales forecast. But for savvy investors, this dip could present an opportunity. In Q3 2024, Honeywell exceeded profit expectations, reporting $2.58 per share against a forecasted $2.52. While the Industrial Automation segment faced a 5% drop in sales, core divisions like Aerospace and Building Automation shined, achieving over 10% year-over-year growth.
💼 The Aerospace division continues to benefit from robust demand for aircraft engines and avionics, with segment sales up by 12% year-over-year. Building Automation also impressed with a 14% sales jump, boosted by Honeywell’s acquisition of Global Access Solutions, strengthening its foothold in automation.
📉 Despite this strong performance, cost pressures led Honeywell to revise its full-year guidance, now expecting $38.6-38.8 billion in sales, reflecting 3-4% organic growth, down from a previous 5-6%. Yet, the company still projects profit growth of 7-8% for 2024. This adjustment, while conservative, doesn’t overshadow Honeywell’s long-term potential, especially as it remains committed to achieving 4-7% annual organic growth.
🛠️ Honeywell’s diversified portfolio, encompassing aerospace, industrial, and energy solutions, gives it resilience against market fluctuations, unlike more narrowly focused competitors. Its dividend yield of 2% might seem modest, but Honeywell’s consistent dividend growth history makes it an attractive option for income-focused investors.
📈 With Aerospace driving positive momentum and the stock trading at a more affordable multiple, Honeywell’s dip might just be the buy-and-hold opportunity for long-term growth and reliable dividends that investors are seeking.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.