We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Honeywell (HON) Q4 Earnings Beat Estimates, Revenues Miss
Read MoreHide Full Article
Honeywell International Inc. (HON - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings surpassed estimates but revenues lagged the same.
Earnings & Revenues
Adjusted earnings came in at $2.09 per share, surpassing the Zacks Consensus Estimate of $2.08. The bottom line increased 1% year over year.
In 2021, the company’s adjusted earnings totaled $8.06, up 13.5% from $7.10 in 2020.
Honeywell’s fourth-quarter revenues were $8,657 million, missing the consensus estimate of $8,741 million. The top line decreased 3% year over year on a reported basis and 2% on an organic basis. The decline was attributable to supply-chain constraints and a decline in COVID mask sales.
In 2021, the company’s net sales were $34,392 million, up 5% from $32,637 million in 2020.
Segmental Breakup
Coming to operating segments, Aerospace’s quarterly revenues were $2,896 million, down 3% year over year. Honeywell Building Technologies’ revenues decreased 2% to $1,404 million. Performance Materials and Technologies’ revenues totaled $2,605 million, up 2% while that for Safety and Productivity Solutions decreased 10% to $1,752 million.
Honeywell International Inc. Price, Consensus and EPS Surprise
The company’s total cost of sales in the reported quarter was $5,936 million, down 0.7% year over year. Selling, general and administrative expenses were $1,203 million, down 3.6%. Interest expenses and other financial charges were $80 million compared with $95 million a year ago.
Operating income in the fourth quarter was $1,518 million, down 9.4% on a year-over-year basis. The operating income margin was 17.5%, down 130 basis points.
Balance Sheet/Cash Flow
Exiting 2021, Honeywell had cash and cash equivalents of $10,959 million compared with $11,087 million in the previous quarter. Long-term debt was $14,254 million, lower than $14,346 million recorded at the end of the previous quarter.
In 2021, the company generated $6,038 million in cash from operating activities compared with $6,208 million in 2020. In 2021, capital expenditure was $895 million compared with $906 million incurred a year ago.
Free cash flow in the quarter was $2,593 million, up 4.1% year over year.
Guidance
Honeywell provided guidance for full-year 2022. The company anticipates earnings to be in the range of $8.40 to $8.70 per share, indicating 4-8% growth year over year. It anticipates revenues to be between $35.4 billion and $36.4 billion, with organic revenues expected to be up 4-7%.
For 2022, Honeywell expects operating cash flow in the range of $5.7 billion to $6.1 billion and free cash flow to be between $4.7 billion and $5.1 billion.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
It delivered a four-quarter earnings surprise of 10.63%, on average.
ITT’s earnings estimates decreased 0.2% for both 2021 (results are awaited) and 2022 in the past 30 days. Its shares have lost 7.2% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2. It delivered a four-quarter earnings surprise of 38.89%, on average.
In the past 30 days, Carlisle’s earnings estimates have been stable for 2021 (results are awaited) and increased 0.2% for 2022. CSL’s shares have lost 3.3% in the past three months.
Tempur Sealy International, Inc. (TPX - Free Report) presently carries a Zacks Rank #2. It came up with a four-quarter earnings surprise of 22.39%, on average.
Tempur Sealy’s earnings estimates have been stable for 2021 (results awaited) and 2022 in the past 60 days. TPX’s shares have lost 11.1% in the past three months.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Honeywell (HON) Q4 Earnings Beat Estimates, Revenues Miss
Honeywell International Inc. (HON - Free Report) reported mixed fourth-quarter 2021 results, wherein earnings surpassed estimates but revenues lagged the same.
Earnings & Revenues
Adjusted earnings came in at $2.09 per share, surpassing the Zacks Consensus Estimate of $2.08. The bottom line increased 1% year over year.
In 2021, the company’s adjusted earnings totaled $8.06, up 13.5% from $7.10 in 2020.
Honeywell’s fourth-quarter revenues were $8,657 million, missing the consensus estimate of $8,741 million. The top line decreased 3% year over year on a reported basis and 2% on an organic basis. The decline was attributable to supply-chain constraints and a decline in COVID mask sales.
In 2021, the company’s net sales were $34,392 million, up 5% from $32,637 million in 2020.
Segmental Breakup
Coming to operating segments, Aerospace’s quarterly revenues were $2,896 million, down 3% year over year. Honeywell Building Technologies’ revenues decreased 2% to $1,404 million. Performance Materials and Technologies’ revenues totaled $2,605 million, up 2% while that for Safety and Productivity Solutions decreased 10% to $1,752 million.
Honeywell International Inc. Price, Consensus and EPS Surprise
Honeywell International Inc. price-consensus-eps-surprise-chart | Honeywell International Inc. Quote
Costs/Margins
The company’s total cost of sales in the reported quarter was $5,936 million, down 0.7% year over year. Selling, general and administrative expenses were $1,203 million, down 3.6%. Interest expenses and other financial charges were $80 million compared with $95 million a year ago.
Operating income in the fourth quarter was $1,518 million, down 9.4% on a year-over-year basis. The operating income margin was 17.5%, down 130 basis points.
Balance Sheet/Cash Flow
Exiting 2021, Honeywell had cash and cash equivalents of $10,959 million compared with $11,087 million in the previous quarter. Long-term debt was $14,254 million, lower than $14,346 million recorded at the end of the previous quarter.
In 2021, the company generated $6,038 million in cash from operating activities compared with $6,208 million in 2020. In 2021, capital expenditure was $895 million compared with $906 million incurred a year ago.
Free cash flow in the quarter was $2,593 million, up 4.1% year over year.
Guidance
Honeywell provided guidance for full-year 2022. The company anticipates earnings to be in the range of $8.40 to $8.70 per share, indicating 4-8% growth year over year. It anticipates revenues to be between $35.4 billion and $36.4 billion, with organic revenues expected to be up 4-7%.
For 2022, Honeywell expects operating cash flow in the range of $5.7 billion to $6.1 billion and free cash flow to be between $4.7 billion and $5.1 billion.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked companies are discussed below.
ITT Inc. (ITT - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It delivered a four-quarter earnings surprise of 10.63%, on average.
ITT’s earnings estimates decreased 0.2% for both 2021 (results are awaited) and 2022 in the past 30 days. Its shares have lost 7.2% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) presently carries a Zacks Rank #2. It delivered a four-quarter earnings surprise of 38.89%, on average.
In the past 30 days, Carlisle’s earnings estimates have been stable for 2021 (results are awaited) and increased 0.2% for 2022. CSL’s shares have lost 3.3% in the past three months.
Tempur Sealy International, Inc. (TPX - Free Report) presently carries a Zacks Rank #2. It came up with a four-quarter earnings surprise of 22.39%, on average.
Tempur Sealy’s earnings estimates have been stable for 2021 (results awaited) and 2022 in the past 60 days. TPX’s shares have lost 11.1% in the past three months.