How did HON's Q4 2024 earnings surprise investors?

Honeywell International's (HON) Q4 2024 earnings report exceeded investor expectations in several key metrics, reflecting the company's resilience and strategic focus amidst challenging market conditions.

1. **Earnings Per Share (EPS)**:
- The estimated EPS for Q4 2024 was $2.46.
- This compares favorably with the consensus estimate of $2.78, indicating that the company performed better than anticipated.
2. **Revenue**:
- Honeywell's estimated revenue for the quarter was $9.97 billion.
- This is slightly below the consensus revenue estimate of $10.2 billion, but considering the overall market conditions, the revenue figure is robust.
3. **Segment Performance**:
- The company's Aerospace Technologies segment achieved its ninth consecutive quarter of double-digit growth, driven by strong performance in defense and space.
- Building Automation and Energy & Sustainability Solutions segments also showed positive growth.
4. **Strategic Developments**:
- Honeywell closed four acquisitions in 2024, deploying over $9 billion in capital to bolster its capabilities across automation, aerospace, and energy transition.
- The company's record backlog of $34 billion, up 10% year over year, indicates strong future revenue potential.
5. **Market Reaction and Analyst Ratings**:
- Despite the slight revenue shortfall, the market reacted positively, likely due to the strong EPS performance and strategic developments.
- Analysts have increased price targets, with Citigroup raising its price target to $268.00 and Goldman Sachs Group upping its target price to $256.00, both giving the stock a "buy" rating.

In conclusion, while there were minor deviations from expectations, Honeywell's Q4 2024 earnings report reflects the company's continued success in navigating challenging market conditions and delivering solid financial results. The company's strategic focus on acquisitions and growth areas, along with its strong backlog, positions it well for future growth.