Honeywell Q1 Earnings Loom As Investors Eye Tariff Hit, Spinoff Updates — Retail's Bullish For Now

Analysts expects the company to report first-quarter (Q1) earnings of $2.21 per share on revenue of $9.6 billion.

Honeywell (HON) stock has gained 2.1% over the past week ahead of its first quarter earnings.

Wall Street expects the company to report first-quarter (Q1) earnings of $2.21 per share on revenue of $9.6 billion, according to FinChat data. It has topped earnings estimates in all of the previous four quarters.

The industrial giant is in the process of a three way split into Aerospace, advanced materials and automation businesses, which it announced in February amid pressure from activist investor Elliott Investment Management.

While analysts would be eagerly waiting for any updates on the split, there will be a lot of  attention to the firm’s commentary on the market amid policy uncertainty.

According to TheFly, BofA analysts expect Q1 earnings to be in line or a beat. However, the firm lowered the stock’s price target to higher uncertainty and established tariffs.

As per a research note on the broader industry, Mizuho analysts believe that tariff escalation, particularly on China, "will sting" businesses.

The brokerage noted that while corporates are already proactively raising price, there might be “some leakage” and unmitigated problems.

Retail sentiment on Stocktwits moved higher into the ‘bullish’ (71/100) than a week ago, while retail chatter remained ‘high.’

In March, the company had agreed to buy engineered pumps and gas compressor maker Sundyne from private equity firm Warburg Pincus for $2.16 billion in an all-cash deal.

The company also announced several key appointments in its advanced materials unit, including a new chief executive officer and a chief financial officer.

Honeywell shares have fallen 12.3% year to date (YTD), compared with a 1.7% fall in the S&P 500 Industrials sector.

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