Honeywell posts in-line Q4 but FY 2022 guidance below consensus
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Honeywell (NASDAQ:HON)
-3.1% pre-market after Q4 earnings and revenues come in roughly as expected, but full-year guidance is weaker than Wall Street estimates.
Q4 net income edged up to $1.43B from $1.36B in the year-ago quarter, sales slipped 2.7% to $8.66B, and operating margin fell to 17.5% from 18.8%.
Honeywell said demand remained strong, with orders up by high-single digits, but attributed the Y/Y sales decline to supply-related constraints, a tough comparison compared to 2020 due to lower COVID-19 mask volumes, and six fewer days in the quarter; closing backlog rose 7% Y/Y to $28B.
Q4 sales by segment: Aerospace -2.8% Y/Y to $2.89B, Performance Materials & Technologies +1.9% to $2.61B, Safety & Productivity Solutions -9.7% to $1.75B, Building Technologies -1.5% to $1.4B.
In the Aerospace segment, commercial aviation aftermarket sales rose 16%, as business and general aviation original equipment, business and general aviation aftermarket, and air transport aftermarket all grew double digits but results were offset by lower U.S. defense volumes which were impacted by supply chain constraints and lower demand.
For FY 2022, Honeywell sees EPS of $8.40-$8.70, below $8.97 analyst consensus estimate, on revenues of $35.4B-$36.4B, below $36.81B consensus; the company also guides for operating cash flow of $5.7B-$6.1B and free cash flow of $4.7B-$5.1B.
Honeywell shares are flat so far this year while edging 4% higher over the past year.