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Highlights
- Honeywell International Inc. (NASDAQ:HON) sales declined 3% YoY to US$8.7 billion in the fourth quarter of 2021.
- Three of its four operating segments saw sales fall in Q4.
- The Honeywell stock grew 4.22% in one year.
Aerospace company Honeywell International Inc. (NASDAQ:HON) on Thursday reported a drop in sales in the fourth quarter due to supply chain issues, but net income saw a modest increase.
The stock slipped 5.98% to US$195.13 at 10:21 am ET on Thursday after the results.
Q4 Performance
Sales declined by 3% YoY to US$8.7 billion. Its net income was US$1.42 billion compared to US$1.35 billion in the same quarter a year ago. Earnings per share diluted grew 7% to US$2.05, while the adjusted EPS rose by 1% to US$2.09 in the quarter.
The company also spent US$8.5 billion in share repurchase, capital expenditures, and acquisitions in 2021. Honeywell increased the dividend payment for the 12th time in 11 years.
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Segment-wise
The sales declined in three out of four Honeywell’s operating segments.
The Aerospace segment was hit by supply chain constraints, although the build rates and flight hours improved for the general aviation and air transport aftermarket. The commercial aviation aftermarket sales were up, partially offset by high material costs.
The building technologies sales decreased 1% YoY in Q4 on an organic basis, driven by lower projects volume and supply chain constraints. Performance materials & technologies sales rose 2% YoY in Q4 due to demand for thermal solutions. Safety & productivity solutions sales were down 6% YoY due to lower personal protective equipment volume.
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Full-year 2021
For the full year 2021, it logged sales of US$34.39 billion, up 5% YoY, and the net income came in at US$5.61 billion. The EPS was US$7.91, up 18% YoY, and the adjusted EPS was US$8.06, an increase of 14% over the previous year.
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2022 Guidance
The company expects the sales to be between US$35.4 billion and US$36.4 billion for the full year 2022, with an expected organic growth rate of 4% to 7%.
The earnings per share are expected to remain in the range of US$8.40 to US$8.70.
The North Carolina based Honeywell International Inc is a diversified technology. It manufactures security technologies, processing solutions, electronics, and turbochargers.
Honeywell’s current market capitalization is around US$134 billion. The dividend yield is 1.91%, and the annualized dividend is US$3.92.
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Bottomline
The NASDAQ 100 Index gained around 8.87% in one year, whereas HON gained 4.22% in one year at the closing price of US$199.14 on February 2, 2022. The company missed the revenue estimates for the quarter and lowered the fiscal 2022 guidance well below expectation.
