Honeywell Q4 2021 Earnings Report
Key Takeaways
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
Honeywell
Honeywell
Honeywell Revenue by Segment
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.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income