Honeywell Takes Flight: Boosts Guidance, Closes Carrier Global Transaction
Portfolio Pulse from Lekha Gupta
Honeywell International Inc. (HON) has raised its second-quarter and FY24 guidance following the acquisition of Carrier Global Corporation's (CARR) Global Access Solutions business for $4.95 billion. The acquisition is expected to be earnings accretive in the first full year. Honeywell projects increased sales, adjusted EPS, and segment margins for FY24 and Q2 FY24. Investors can gain exposure to Honeywell via ETFs like GCAD and PPA.
June 03, 2024 | 12:53 pm
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NEUTRAL IMPACT
Carrier Global Corporation sold its Global Access Solutions business to Honeywell for $4.95 billion. This divestiture may impact Carrier's future revenue streams and strategic focus.
While the sale provides immediate capital, it may affect Carrier's long-term revenue and strategic direction. The short-term impact on stock price is uncertain.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Gabelli Commercial Aerospace And Defense ETF (GCAD) includes Honeywell, which has raised its guidance following a significant acquisition. This could positively impact the ETF's performance.
Honeywell's improved outlook could enhance the performance of ETFs holding its stock, such as GCAD, leading to potential gains for investors.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Honeywell raised its Q2 and FY24 guidance following the acquisition of Carrier Global's Global Access Solutions business. The acquisition is expected to be earnings accretive in the first full year, with increased sales, adjusted EPS, and segment margins projected.
The acquisition and raised guidance indicate strong future performance, likely boosting investor confidence and driving the stock price up in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100