Honeywell International Inc. (NYSE:HON) reported its results for the second fiscal quarter of 2013 this morning before the markets opened on Wall Street. The company showed earnings of $1.28 per share on revenue of $9.69 billion for the period. Stock in Honeywell International Inc. (NYSE:HON) closed at $82.97 in Thursday’s trading.
Analysts following the aerospace manufacturer were looking for earnings of $1.21 per share for the three month period ending June 30. Consensus revenue estimates suggested that the company would bring in $9.7 billion in the quarter.
In the same three months of 2012, Honeywell International Inc. (NYSE:HON) earned $1.14 per share on revenue of $94 billion. The company’s stock has been performing well so far in 2013. As of close on Thursday the company’s shares had appreciated by more than 30 percent since January 1.
Diversification of Honeywell
Honeywell International Inc. (NYSE:HON) is a diversified industrial but it remains flexible enough to allocate resources to markets that provide the greatest returns. This means that in recent quarters the company has pumped more of its time into energy filed services in order to reap the boom in North American drilling.
Honeywell will go where it can in order to make those returns. The company’s bread and butter is aerospace, where it manufactures in flight instruments and cockpit controls. One of the company’s more interesting products in the current environment is automobile turbo chargers. Electric cars may become a significant force in the coming years and that segment may add real value to Honeywell.
Growing pains
Honeywell is in a decent position to expand and its flexibility make it among the better contenders for growth among diversified industrials, but real growth is difficult for a large firm already worth what Honeywell International Inc. (NYSE:HON) is worth. The firm’s executive will have to attempt something really special. Looking at the firm’s stock growth, however, it appears investors are confident in the company’s ability to grow.
Honeywell International Inc. (NYSE:HON) shares are currently trading at a P/E of over 21. For a business in Honeywell’s industry that implies investors are looking for the company to grow in the coming months and years.
Investors and analysts will question Honeywell about its plans for the future in the conference call the company is set to host at 9:30 am EST in order to discuss these earnings.
