Monday, December 10, 2012

Honeywell 2013 Guidance & Acquisition

Honeywell forcasted earnings for 2013 today and based off an earlier projection, they are on target for the midpoint of their previous target ranges.  Posting a 1-3% organic growth with a total of 4-5% including acquisitions and an EPS growth projected to be at 6-11% to $4.75-4.95, which are being based off of a positive outlook on strong margins.  Keeping in line with previous projections and still not hitting our price target, I feel we should hold Honeywell and with needing an update to the thesis, it may become a potential buy.   

Also with guidance on earnings being released, Honeywell announced another acquisition in which they acquired Intermec, a leading provider in mobile computing, RFID and barcode solutions, label and receipt printers for use in warehouse, field service, supply chain and manufacturing environments, etc.  They were purchased for 10$ a share or a total of $600 million, net of cash and debt. This is bringing more scale to their automations and control services portfolio and providing exposure to new services. 

To reiterate, with an needed update to the thesis, I will keep Honeywell at a hold with a potential opportunity to become a buy in the near future. 

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