NASDAQ$HON

Honeywell International Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Delivered strong fourth quarter results with full year operating cash flow and free cash flow above the high end of initial guidance.

Honeywell announced Q4 2021 results, reporting sales of $8.7 billion and adjusted EPS of $2.09, exceeding expectations despite supply-related constraints and other challenges. The company's backlog increased to $28 billion, and it issued 2022 guidance, projecting sales growth and margin expansion.

  • Fourth Quarter Sales of $8.7 Billion at Midpoint of Previous Guidance
  • Fourth Quarter EPS of $2.05 and Adjusted EPS of $2.09, Above Midpoint of Previous Guidance
  • Full Year EPS of $7.91 and Adjusted EPS of $8.06, Above High End of Initial Guidance
  • Deployed $8.5 Billion in Capital to Share Repurchases, Dividends, Capital Expenditures, and Acquisitions in 2021

Headline financials

Total Revenue

$8.66B

Previous: $8.9B-2.7%
EPS (adj)

$2.09

Previous: $2.07+1.0%
Organic Sales Growth

-2.0%

Previous: -7.0%+71.4%
Operating Margin

17.5%

Previous: 18.8%-6.9%
Segment Profit Margin

21.4%

Previous: 21.1%+1.4%
Capital Expenditures

$281M

Previous: $291M-3.4%
Free Cash Flow

$2.38B

Previous: $2.49B-4.4%
Net Income

$1.44B

Previous: $1.38B+4.6%
Operating Income

$1.52B

Previous: $1.68B-9.4%
Gross Profit

$2.72B

Previous: $2.92B-6.9%
Cash & Equivalents

$11B

Previous: $14.3B-23.2%
Total Assets

$64.5B

Previous: $64.6B-0.2%
Stock-Based Comp

$45M

Previous: $50M-10.0%

Revenue & EPS history

Honeywell · Revenue · Quarterly

$8.66B

Q4 2021-2.7%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
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 $35.4 billion to $36.4 billion, representing year-over-year organic growth of 4% to 7%; segment margin expansion of 10 to 50 basis points; earnings per share of $8.40 to $8.70; operating cash flow of $5.7 billion to $6.1 billion, and free cash flow of $4.7 billion to $5.1 billion.

Tailwinds

  • Sales of $35.4B - $36.4B
  • Organic Growth 4% - 7%
  • Organic Growth Excluding Impact of COVID-Driven Mask Sales Declines 5% - 8%
  • Segment Margin 21.1% - 21.5%
  • Expansion Up 10 - 50 bps

Headwinds

  • Segment Margin Excluding the Impact of Quantinuum 21.4% - 21.8%
  • Expansion Excluding Impact of Quantinuum Up 40 - 80 bps
  • Earnings Per Share $8.40 - $8.70
  • Adjusted Earnings Growth 4% - 8%
  • Free Cash Flow $4.7B - $5.1B

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 2021

Historical avgQ4 2021

+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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