Honeywell International Inc. (HON Quick QuoteHON - 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.

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 Quick QuoteITT - 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 Quick QuoteCSL - 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 Quick QuoteTPX - 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.