"Honeywell (HON): Buy, Sell, or Hold Post Q4 Earnings?"

Ladies and gentlemen, buckle up! We're diving headfirst into the world of Honeywell International (HON) post their Q4 2024 earnings report. This isn't just any earnings call; it's a game-changer! Honeywell has pulled out all the stops, and the results are in. Let's break it down and see if this stock is a BUY, SELL, or HOLD!



First things first, the numbers are in, and they're impressive! Honeywell reported a 7% year-over-year increase in sales, hitting a whopping $10 billion. Organic sales growth was 2%, and net income attributable to Honeywell was $1.28 billion. GAAP earnings per share (EPS) was $1.96, up 3% year-over-year, while adjusted EPS was $2.47, down 8% year-over-year but still impressive. The company's backlog grew 11% to a record $35.3 billion. This is a company on the move!

Now, let's talk about the strategic moves. Honeywell announced a full separation of its Automation and Aerospace businesses, creating three independent, industry-leading public companies. This is a bold move, and it's all about unlocking value for shareholders. The separation is expected to be completed in the second half of 2026, and it's tax-free for Honeywell shareholders. This is a no-brainer for investors looking for growth and value!

But wait, there's more! Honeywell's acquisitions and divestments have been a game-changer. In 2024, the company deployed over $14 billion of capital, including four closed acquisitions for approximately $9 billion. These acquisitions have expanded Honeywell's product offerings and market reach, contributing to its growth and revenue streams. The planned spin of Advanced Materials and the sale of its personal protective equipment business have allowed Honeywell to exit noncore lines of business, focusing on its core competencies and driving operational efficiency.

Now, let's talk about the future. Honeywell provided its outlook for 2025, expecting sales of $39.6 billion to $40.6 billion, with organic sales growth in the range of 2% to 5%. Segment margin is expected to be in the range of 23.2% to 23.6%, with segment margin expansion of 60 to 100 basis points. Adjusted EPS is expected to be in the range of $10.10 to $10.50, up 2% to 6%. Operating cash flow is expected to be in the range of $6.7 billion to $7.1 billion, and free cash flow is expected to be in the range of $5.4 billion to $5.8 billion. This is a company poised for growth!

So, what's the verdict? BUY, SELL, or HOLD? Given the strong financial performance, strategic initiatives, and portfolio optimization, Honeywell is a BUY! The company's expected growth in sales, segment margin, and adjusted EPS, coupled with its robust cash flow generation, indicate a positive outlook for 2025. The planned separation of Automation and Aerospace businesses is expected to unlock significant value for shareholders and customers, while the company's acquisitions and divestments have contributed to its growth and revenue streams. As investors look ahead to the next year, Honeywell's stock price is poised for growth and transformation, driven by its strong financial performance and strategic initiatives.

So, don't miss out on this opportunity! Honeywell is a company on the move, and it's time to get on board. BUY NOW!