Honeywell (HON) Drops Despite Positive Earnings

NEW YORK (TheStreet) -- Honeywell (HON) dropped 1.5% to $88.50 Friday despite an earnings report that beat Wall Street earnings estimates.

In its fourth-quarter earnings report Honeywell posted earnings of $1.24 a share, beating the Capital IQ Consensus Estimate of $1.22 a share by 2 cents. Revenue rose 8.4% year over year to $10.39 billion, compared to the consensus estimate of $10.2 billion.

Honeywell said sales increased by 3% during the fourth quarter of 2013 compared to the fourth quarter of 2012. The sales increases were thanks to 3% Commercial growth and a 2% increase in Defense and Space.

Along with the earnings report Honeywell reaffirmed its guidance for 2014. The guidance estimates earnings of between $5.35 and $5.55 a share. Capital IQ Consensus estimates earnings of $5.54 a share for the year. The company expects revenue of between $40.3 billion and $40.7 billion in 2014, compared to consensus estimates of $40.78 billion.

TheStreet Ratings team rates HONEYWELL INTERNATIONAL INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate HONEYWELL INTERNATIONAL INC (HON) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

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