Honeywell Stock (HON) Rises After Q3 Success as Solstice Spin-Off Launches

Honeywell’s Stock Rises After Strong Q3 Earnings

Honeywell (HON) saw its stock price increase during early trading on Thursday following the release of its third-quarter fiscal 2025 results, which came in ahead of Wall Street predictions.

CEO Vimal Kapur announced that the divestiture of Solstice Advanced Materials is anticipated to wrap up by the end of this month.

Honeywell’s Revenue and Earnings Per Share Exceed Expectations

The North Carolina-based company, which has separated into three public entities focusing on automation, aerospace, and advanced materials, reported a revenue increase of around 7%, reaching $10.4 billion. This surpassed analysts’ predictions of $10.16 billion.

Honeywell also reported adjusted earnings per share of $2.82, beating expectations of $2.57. Kapur highlighted that there were “new record increases” in orders across various segments, contributing to this growth.

Furthermore, he mentioned that recent enhancements to the integrated products on the Honeywell Forge platform have boosted recurring revenue across its offerings.

The Honeywell Forge platform, which operates in the cloud, is utilized in sectors like manufacturing, architecture, and aerospace. It aims to optimize performance, safety, and efficiency through AI and IoT technologies.

Honeywell Ups Earnings Forecast Despite Revenue Decline

Looking ahead, despite the planned divestiture, Honeywell has expressed confidence, raising its full-year adjusted EPS forecast. The conglomerate now expects earnings per share to fall between $10.60 and $10.70, surpassing its previous range and Wall Street’s expectations of $10.54 per share.

Conversely, Honeywell has adjusted its revenue expectations downward, now aiming for a total revenue of $40.7 billion to $40.9 billion for the fiscal year. Even so, the higher end of this forecast remains slightly above Wall Street’s consensus of $40.88 billion.

“We remain focused on attractive opportunities to deliver outcome-based solutions to our customers,” Kapur remarked.

Should Investors Consider Honeywell Stock?

Wall Street appears to be taking a cautious stance on Honeywell’s stock. As of now, the overall rating remains at Moderate Buy, based on 6 Buys and 5 Holds assigned by 11 analysts in the past three months, according to TipRanks data.