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Sep 30, 2021
Honeywell Q3 2021 Earnings Report
Honeywell delivered strong results with sales growth and operating margin expansion.
Key Takeaways
Honeywell announced strong Q3 2021 results, with sales up 9% and organic sales up 8%. The company expanded its operating margin by 180 basis points and segment margin by 130 basis points. Adjusted earnings per share reached $2.02, a 29% increase year-over-year. The company has updated its full-year guidance to reflect the persistent effects of the macro-challenged environment as well as the third-quarter results.
Earnings Per Share of $1.80, Adjusted Earnings Per Share of $2.02, at High End of Guidance
Organic Sales up 8%; Second Straight Quarter of Sales Growth in All Four Segments
Operating Margin up 180 Basis Points to 18.6%; Segment Margin up 130 Basis Points to 21.2%
Orders up High Single Digits, up Double Digits Ex-COVID Mask Demand; Backlog up 7% to $27.5 Billion
Revenue by Segment
Forward Guidance
Honeywell updated its full-year guidance to reflect the persistent effects of the macro-challenged environment as well as the third-quarter results. Full-year sales are now expected to be in the range of $34.2 billion to $34.6 billion with organic sales growth in the range of 4% to 5% due to supply chain constraints. Segment margin is expected to be in the range of 20.9% to 21.1%. Adjusted earnings per share is expected to be $8.00 to $8.10. Operating cash flow is still expected to be in the range of $5.9 billion to $6.2 billion and free cash flow is still expected to be in the range of $5.3 billion to $5.6 billion.
Positive Outlook
- Full-year sales are now expected to be in the range of $34.2B - $34.6B.
- Organic sales growth in the range of 4% - 5%.
- Segment margin is expected to be in the range of 20.9% - 21.1%.
- Adjusted earnings per share is expected to be $8.00 - $8.10.
- Operating cash flow is still expected to be in the range of $5.9B - $6.2B.
Challenges Ahead
- Supply chain constraints are expected to persist.
- Effects of the macro-challenged environment are expected to persist.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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