Honeywell Aerospace Shares Plummet on Supply Chain Worries

Honeywell Aerospace shares plummeted up to 26% on Thursday after it cut its annual sales target and forecast profit below estimates.

The company's second-quarter adjusted profit per share fell by 32% to $1.87, while sales rose 5% to $4.52 billion, both missing analysts' expectations.

Finance chief Josh Jepsen said the forecast reset is based on supply chain issues and the lack of ramp in that supply.

J.P. Morgan cut its price target for Honeywell Aerospace to a Street-low of $235 from $255, saying its discount to peers is likely to widen following these results.