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Guy Adami said on CNBC's Fast Money that he thinks the right price for Honeywell (NYSE: HON) is $35.Guy Adami said on CNBC's Fast Money that he thinks the right price for Honeywell (NYSE: HON) is $35. Guy Adami spotted a double top on Honeywell's (HON) chart, which is a trend reversal sign, and he also sees the support for HON at $35.

Honeywell (HON) dropped 2.47% today to close at $38.25. The stock traded in the range of $37.95 to $38.88, and had a volume of $6.72M.

TransDigm Group Incorporated (TDG) reported fourth quarter 2009 earnings per share of 82 cents, beating the Zacks Consensus Estimate of 80 cents. Net sales for the quarter rose 4.3% to $197.4 million from $189.2 million in the comparable year-ago quarter. The favorable contribution from acquisitions was partially offset by a 4.6% decline in organic net [...]

(TDG) TransDigm Group Incorporated Beats Estimates

TransDigm Group Incorporated (TDG) reported fourth quarter 2009 earnings per share of 82 cents, beating the Zacks Consensus Estimate of 80 cents. Net sales for the quarter rose 4.3% to $197.4 million from $189.2 million in the comparable year-ago quarter. The favorable contribution from acquisitions was partially offset by a 4.6% decline in organic net sales. 

The decrease in organic sales was primarily due to lower commercial OEM and aftermarket demand partially offset by strong defense sales. The company completed the acquisition of three proprietary aerospace component businesses and ended the fiscal year in sound financial condition with nearly $190 million in cash and almost $200 million of unutilized capacity under its revolving credit facility. 

For 2010, in the Commercial OEM segment, the company is assuming a revenue decline in the mid-single digit percent range. This is based on a reduction in commercial transport rates in the second half of the fiscal year as well as lower business jet revenues. 

In the Commercial Aftermarket segment, it anticipates worldwide traffic growth to be modestly down in the first half and increase in the second half, and flattish year over year. This yields a low to mid-single digit percentage revenue growth for the year. 

In the Defense segment, it expects a low single digit percentage decline for the year. Net sales for 2010 are anticipated in the range of $770 million to $800 million compared with $762 million in fiscal 2009. Net income is anticipated in the range of $116 million to $126 million compared with $163 million in fiscal 2009. 

The fiscal 2010 Net Income will be negatively impacted by the amortization and interest expense relating to the recent bond offering and costs associated with the one-time special dividend. Earnings per share are expected to be in the range of $2.28 to $2.48. 

The current Zacks Consensus Estimate stands at $3.04, which excludes one-time charges. TransDigm Group is a leading global designer, producer and supplier of highly engineered aircraft components for use in nearly all commercial and military aircraft in service today. 

Major competitors include Goodrich Corporation (GR), Honeywell International (HON) and United Technologies Corporation (UTX). We currently have a Neutral recommendation on TDG.
Read the full analyst report on "TDG"
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Zacks Investment Research

As of today the top ten option contracts traded were: HSBC (HBC) January 35 Call OptionsAvon (AVP) January 22.50 Call OptionsUnited Technologies (UTX) November 65 Call OptionsS&P 500 SPDR (SPY) November 110 Call OptionsTarget (TGT) January 30 Call OptionsUnited Technologies November 60 Call Options3M (MMM) January 55 Call OptionsS&P 500 SPDR November 109 Put OptionsHoneywell (HON) November 38 Call OptionsHSBC November 55 Call[More...]

Tyco International Ltd. (TYC) reported fourth-quarter earnings per share from continuing operations of 61 cents. This was higher than the Zacks Consensus Estimate of 54 cents per share. Quarterly Revenues of $4.4 billion declined 16% versus the prior year with an organic revenue decline of 12%. For the largest operating segment, ADT Worldwide, revenues of $1.8 [...]

(TYC) Tyco International Exceeds Consensus Estimates

Tyco International Ltd. (TYC) reported fourth-quarter earnings per share from continuing operations of 61 cents. This was higher than the Zacks Consensus Estimate of 54 cents per share.
 
Quarterly Revenues of $4.4 billion declined 16% versus the prior year with an organic revenue decline of 12%. For the largest operating segment, ADT Worldwide, revenues of $1.8 billion declined 9% in the quarter with an organic revenue decline of 5% and a 4% decline due to changes in foreign currency. ADT's recurring revenues grew 4% organically on a global basis. Systems installation and service revenue declined 14% organically, mostly due to weakness in North America and Europe, as a result of continuing lower sales to commercial customers, including the retailer end market.

For Flow Control, revenues of $1 billion declined 15% in the quarter with an organic revenue decline of 10%. Organic revenues declined 7% in the Valves business, 17% in Water and 12% in Thermal Controls. In Fire Protection Services, revenues of $904 million declined 11% in the quarter with an organic revenue decline of 7%. Service revenues declined 5% organically and installation revenues declined 8% driven by continued softness in the North American and EMEA regions. Revenues declined 45% in the Electrical and Metal Products segment and 25% in Safety Products on a year-over-year basis.
 
Operating income was $226 million in the quarter and the operating margin was 12.6%. Special items of $31 million resulted primarily from restructuring activities. The operating margin before special items improved 160 basis points to 14.3%, as cost-containment initiatives, restructuring activities and growth in ADT's higher-margin recurring revenue business more than offset volume declines.
 
Cash from operating activities was $985 million in the quarter. The company had free cash flow of $614 million, which included cash payments of $84 million for restructuring and legacy legal matters.
 
Cash and equivalents were $2.3 billion with long-term debt at $4 billion and shareowners’ equity at $12.9 billion.
 
The company’s large and growing service revenue base has provided stability and consistency to its performance in 2009 and now represents about 40% of its total revenues. A significant portion of service revenues is contractual recurring revenue in ADT, which grew 4% organically for the year with growth across all geographic regions.
 
Throughout the year the company was very active in executing cost containment programs, which resulted in charges of about $250 million. These actions, which are expected to provide incremental savings of $175 million in 2010, included staffing reductions as well as the consolidation of both back office operations and manufacturing facilities.

The company anticipates an organic revenue decline of 11% to 13% for the first quarter of 2010. Partially offsetting this decline will be the currency tailwind which is estimated at about 5% of revenue. This brings the total revenue for the quarter to approximately $4.1 billion Tyco expects earnings per share from continuing operations before special items in the first quarter to be between 48 and 50 cents. The Zacks Consensus Estimate is currently 52 cents.
 
Tyco is a diversified, global company that provides vital products and services to customers around the world. Tyco is a leading provider of security products and services, fire protection and detection products and services, valves and controls, and other industrial products. Major competitors include General Electric Co. (GE), Honeywell International Inc. (HON) and United Technologies Corp. (UTX).
 
We currently have an Outperform recommendation on TYCO.

Read the full analyst report on "TYC"
Read the full analyst report on "GE"
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Read the full analyst report on "UTX"
Zacks Investment Research

Companies featured in this segment: Tata Power Company Limited (BSE:500400), Honeywell International Incorporated (NYSE:HON), Holly Corporation (NYSE:HOC), ConocoPhillips (NYSE:COP)

Schaeffer's analyst Morgan Searcy takes a look at news on the Street before the market open.

Companies featured in this segment: The Boeing Company (NYSE:BA), Northrop Grumman (NYSE:NOC), Flowserve Corporation (NYSE:FLS), Doosan Heavy Industries and Construction Company Limited (SEO:034020), Hyundai Engineering and Construction Company Limited (SEO:000725), Korea Electric Power Corporation (SEO:015760), Hindustan Petroleum Company Limited (BSE:500104), Technip SA (OTC:TKPPY), Toyo Engineering Corporation (TYO:6330), Toyo Engineering Corporation (TYO:6330), Honeywell International (NYSE:HON), Larsen & Toubro Limited (BSE:500510), Hitachi Corporation (NYSE:HIT), Total SA (NYSE:TOT), GAIL India Limited (BSE:532155), Mangalore Refinery and Petrochemicals Limited (BSE:500109), E.ON AG (OTC:EONGY), OAO Gazprom (OTC:OGZPY), POSCO (NYSE:PKX), Alter NRG Corporation (TSX:NRG)

Companies featured in this segment: Honeywell International Incorporated (NYSE:HON), E.I. du Pont de Nemours and Company (NYSE: DD), Total SA (NYSE:TOT), ConocoPhilips (NYSE:COP), BASF SE (OTC:BASFY), ENI SpA (NYSE:E), E.ON AG (OTC:EONGY), Scottish and Southern Energy plc (OTC:SSEZY), Drax Group plc (LSE:DRX), Al Ezz Steel Rebars SAE (CAI:ESRS), Al Ezz Dekheila Steel SAE (CAI:IRAX)

Companies featured in this segment: MEMC Electric Materials Incorporated (NYSE:WFR), Wacker-Chemie GmbH (XETRA:WCH.DE), Polymer Group Incorporated (OTC:POLGA), Foster Wheeler Energy Limited, Foster Wheeler Limited (NASDAQ:FWLT), StatoilHydro ASA (NYSE:STO), Honeywell International Incorporated (NYSE:HON), Salalah Methanol Company LLC, Oman Oil Company SAOC, GS Engineering & Construction Corporation (SEO:006360), General Mills Incorporated (NYSE:GIS), JP Morgan Chase (NYSE:JPM), Hyundai Corporation (SEO:011760), Alstom SA (EPA:ELO), General Electric Company (NYSE:GE), and Siemens AG (NYSE:SI).