NASDAQ$HON

Honeywell International Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Honeywell overdelivered on sales and announced four acquisitions in the fourth quarter.

Honeywell announced results for the fourth quarter and full year 2020 that exceeded investor expectations, as well as its outlook for 2021. The company reported a fourth-quarter year-over-year sales decline of 6%, down 7% on an organic basis.

  • Reported Fourth Quarter Earnings Per Share of $1.91 and Adjusted EPS1 of $2.07, Above High End of Guidance
  • Delivered Fourth Quarter Operating Cash Flow of $2.8 Billion, Conversion of 205%, and Free Cash Flow of $2.5 Billion, Adjusted Conversion2 of 170%
  • Completed Three M&A Deals Aligned to Key Growth Vectors and Announced Agreement to Acquire Sparta Systems for $1.3 Billion
  • Expect 2021 Earnings Per Share of $7.60 - $8.00, Up 13% - 19%, 7% - 13% Adjusted3

Headline financials

Total Revenue

$8.9B

Previous: $9.5B-6.3%
EPS (adj)

$2.07

Previous: $2.06+0.5%
Organic Sales Growth

-7.0%

Previous: 2.0%-450.0%
Operating Margin

18.8%

Previous: 17.8%+5.6%
Segment Profit Margin

21.1%

Previous: 21.4%-1.4%
Capital Expenditures

$291M

Previous: $335M-13.1%
Free Cash Flow

$2.49B

Previous: $2.28B+9.3%
Net Income

$1.38B

Previous: $1.59B-13.3%
Operating Income

$1.68B

Previous: $1.7B-1.1%
Gross Profit

$2.92B

Previous: $3.17B-7.7%
Cash & Equivalents

$14.3B

Previous: $9.07B+57.4%
Total Assets

$64.6B

Previous: $58.7B+10.1%
Stock-Based Comp

$50M

Previous: $41M+22.0%

Revenue & EPS history

Honeywell · Revenue · Quarterly

$8.9B

Q4 2020-6.3%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Honeywell · $5.82B total across 3 segments · Q1 2021

  • Energy & Sustainability
    $2.35B
  • Industrial Automation
    $2.12B
  • Building Automation
    $1.36B

Forward guidance

Honeywell expects sales of $33.4 billion to $34.4 billion, representing year-over-year organic growth of 1% to 4%; segment margin expansion of 30 to 70 basis points; earnings per share of $7.60 to $8.00, up 7% to 13% adjusted3; operating cash flow of $5.7 billion to $6.1 billion, and free cash flow6 of $5.1 billion to $5.5 billion.

Tailwinds

  • Sales of $33.4B - $34.4B
  • Organic Growth 1% - 4%
  • Segment Margin 20.7% - 21.1%
  • Expansion Up 30 - 70 bps
  • Earnings Per Share $7.60 - $8.00

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.6%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+2.0%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+7.7%

Q3 2022

Best reaction

-7.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-3.2%+3.6%
Q4 2025+4.5%+6.6%+12.4%
Q3 2025+6.4%+3.8%-2.4%
Q2 2025-0.7%-1.4%-3.8%
Q1 2025+5.4%+6.7%+12.2%
Q4 2024-5.6%-6.9%-3.5%
Q3 2024-5.6%-6.5%+4.0%
Q2 2024-5.1%-5.2%-5.2%
Q1 2024-0.7%-1.1%+2.5%
Q4 2023-3.0%-4.3%-1.8%
Q3 2023-0.6%+2.9%+8.6%
Q2 2023-6.3%-7.1%-10.5%
Q1 2023+4.7%+3.9%+1.5%
Q4 2022-1.9%-0.6%-4.8%
Q3 2022+7.7%+6.7%+15.7%
Q2 2022+4.8%+3.0%+5.1%
Q1 2022+3.7%+8.4%+3.4%
Q4 2021-7.7%-6.3%-9.7%
Q3 2021-3.1%-3.9%-2.7%
Q2 2021-1.5%-1.0%-2.2%
Q1 2021-3.4%-2.8%-2.6%
Q4 2020-3.6%-1.8%-0.2%
Q3 2020+5.5%+8.7%+27.2%
Q2 2020-1.9%+0.6%+2.5%
Q1 2020-4.7%-6.2%+2.8%
Q4 2019-3.9%-0.8%-9.1%
Q3 2019+1.2%+3.2%+11.1%
Q2 2019+2.6%+3.7%-2.1%
Q1 2019+3.3%+5.5%+4.3%
Q4 2018+3.0%+3.7%+8.4%
Q3 2018-1.7%-6.3%-1.2%
Q2 2018+4.2%+7.1%+5.2%
Q1 2018+0.3%-0.7%+0.1%
Q4 2017-0.2%-1.3%-4.2%
Q3 2017+1.6%+1.7%+2.0%
Q2 2017+2.0%+2.6%+0.0%
Q1 2017+4.9%+5.1%+6.2%
Q4 2016+1.0%+0.0%+6.0%
Q3 2016+1.0%+1.2%+3.7%
Q2 2016-2.7%-3.1%-2.1%
Q1 2016-1.5%
Q4 2015+5.0%
Q3 2015-1.3%
Q2 2015+2.7%
Q1 2015-1.3%
Q4 2014+2.5%
Q3 2014+4.2%
Q2 2014+2.3%
Q1 2014-0.1%
Q4 2013+0.5%
Q3 2013-2.4%
Q2 2013+0.1%
Q1 2013+4.4%
Q4 2012+1.0%
Q3 2012+1.4%
Q2 2012+6.3%
Q1 2012+2.1%
Q4 2011+0.7%
Q3 2011+6.9%
Q2 2011-3.3%
Q1 2011+2.7%
Q4 2007+0.2%
Q4 2010+0.2%
Q3 2010+1.8%
Q2 2010-0.5%
Q1 2009+1.7%
Q1 2010+0.2%
Q4 2009+1.8%
Q3 2008-2.1%
Q3 2009-2.1%
Q4 2008+2.8%
Q2 2009+2.8%
Q2 2008+2.8%

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