Honeywell: 2020 Will Be Bad, and That's OK
When industrial giant Honeywell International (NYSE: HON) first laid out its full-year 2020 projections, it called for organic sales to grow as much as 3%. It reaffirmed that call in early March. And all of that could be set asunder because of COVID-19, the impact of which began to increase in scale in the days following Honeywell's March update. In the end, 2020 is likely to be a bad year for Honeywell.
But that doesn't change the long-term positives here.
Going into 2020, Honeywell optimistically called for organic sales to increase as much as 3%. That may not sound all that impressive, but in the cyclical industrial industry it's actually a pretty good number. These companies tend to see sales growth track along with the broader economy, both up and down. However, Honeywell provided a range, as most companies do, on this metric. The downside risk was flat organic growth. Even with that, it was expecting margin improvements to allow for at least a 5% bump in adjusted earnings in 2020.
Source Fool.com
