Honeywell Exceeds Expectations in Recent Earnings Report

The Six Five team discusses Honeywell’s most recent earnings report as they come in above expectations, with software helping drive their growth.

Watch the clip:

If you are interested in watching the full episode you can check it out here.

Disclaimer: The Six Five Insiders Webcast is for information and entertainment purposes only. Over the course of this podcast, we may talk about companies that are publicly traded and we may even reference that fact and their equity share price, but please do not take anything that we say as a recommendation about what you should do with your investment dollars. We are not investment advisors and we do not ask that you treat us as such.


Daniel Newman: Anyway, let’s jump on, Pat, because we always do go long, and I want to make sure we get through all of these stuff. A little bit of a quicker shot through the ball here, but Honeywell. So over the last few months, you and I have been talking more about this company, and I feel like each time we bring them on as a topic on the show, we need to sort of remind people. This is a company that has a massive commitment to quantum.

This is a company that has a significant commitment in IOT and converged enterprise performance management software, building management using intelligence, AI, IOT. Well, this quarter, the company came in with some pretty solid results. And when I say solid results, I am basically saying, beating the expectations that were coming in from the streets. So, just touching on it quickly because overall, the company came in above on earnings. The company came in above expectations on revenue, fairly flat, Pat, on a year over year basis. What are we looking at? We’re not looking at masks. We’re not looking at building products, thermostats. But what we are looking at is the fact that this company is layering in software, SAS-based software solutions that overlay buildings, overlay jet engines, overlay their production, their workflow management for hundreds of thousands of industrial companies that use Honeywell.

And so what we got from CEO Darius Adamczyk… What I look forward to you and I talking to at some point in the near future, [crosstalk] maybe at an event, is that they’re seeing double digit percentage growth in their software business that’s focused on IOT and SAS and enterprise performance. And this is, basically as I see it, the two spots where I want to see more strength from Honeywell. First of all, I want to see this capability laid into more products and more clearly articulated to the market by the company how Honeywell Forge EPM are part of the bigger and broader story of the company success. We’ll come back and be talking more and more, but in terms of Honeywell coming on par, and it really is. I think if you and I had one big objective here, is to help people see that this pivot is not a temporary or a momentary thing. This company is coming into technology much like we’ve seen with Siemens and others, this is the focus, not an afterthought and not an extension. We’ll see if they can get there soon.

Patrick Moorhead: Good analysis, Daniel. Yeah, I can’t wait. The way I look at Honeywell right now is they’re one of the only, if not the only, OT plus IT companies. They hired a bunch of incredible people out of IT to augment that. They come up with an industry leading EPM. And in many ways, they’re leading on many factors in quantum. And these things just take time, right? I mean, when you’re looking at quantum, which people are debating, hey, five years or 10 years, it’s going to take some time. We need to be a patient. What’s more near term to me, but still a very long lift, is in the industrial IOT. And the way that we manage it, those are very long lifts, because a lot of these are brownfield and it takes time. But, what you and I get paid to do primarily is, it’s fun to talk stonks, but it’s to point out kind of the gems of the industry. So good stuff, Daniel.

Daniel Newman: Yeah. More time in the near future.

Author Information

Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.

From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.

A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.

An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.


Latest Insights:

On this episode of The Futurum Tech Webcast – Live! From the Show Floor, Craig Durr welcomes Sam Kennedy, Senior Director, Product Marketing for Crestron Electronics for a conversation on Crestron’s latest announcements at Zoomtopia 2023.
A Review of The Major Announcements and Takeaways at the MWC23 Las Vegas Show Including Big Moves by T-Mobile, Nokia, and Ericsson
The Futurum Group’s Ron Westfall and Todd R Weiss explore the top takeaways from the MWC23 Las Vegas show, including Nokia’s Network as Code debut, the launch of T-Mobile SASE, and Ericsson’s support for open fronthaul across its Cloud RAN/radio portfolio.
Veeam Acquires the Cirrus BUaaS Platform and Is Initially Targeting Microsoft 365 and Azure
Krista Macomber, Senior Analyst for The Futurum Group, discusses Veeam’s acquisition of the Cirrus BUaaS platform and the implications for the BUaaS and SaaS protection marketplaces.
Nokia Debuts Its Network as Code Platform Aimed at Accelerating CSP Network Programmability and Monetization by Spurring Broader Developer Support of APIs
The Futurum Group’s Ron Westfall examines why the new Nokia Network as Code platform and developer portal can deliver the much-needed catalyst to ensure CSPs play an instrumental role in the B2B digitalization ecosystem.