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Honeywell
🇺🇸 NASDAQ:HON
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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

Total Revenue
$8.47B
Previous year: $7.8B
+8.7%
EPS
$2.02
Previous year: $1.56
+29.5%
Segment Margin
21.2%
Previous year: 19.9%
+6.5%
Operating Income Margin
18.6%
Organic Sales Growth
8%
Gross Profit
$2.73B
Previous year: $2.41B
+13.0%
Cash and Equivalents
$11.1B
Previous year: $14B
-21.0%
Free Cash Flow
$911M
Previous year: $758M
+20.2%
Total Assets
$64.2B
Previous year: $63.5B
+1.2%

Honeywell

Honeywell

Honeywell 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.
  • Raw material inflation.
  • Labor market challenges.
  • Uncertain global environment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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