Honeywell Aerospace Shares Plummet on Weak Q2 Results

Honeywell Aerospace shares plummeted by nearly 20% on Thursday after the company posted weaker-than-expected second-quarter results and sharply reduced its full-year guidance.

The newly independent aerospace and defense supplier reported revenue of $4.52 billion, a 5% increase from last year but below Wall Street's expectation of $4.6 billion.

Operating profit came in at approximately $1 billion, missing analysts' estimates by $100 million and declining 7% year over year due to inventory obsolescence charges.

Honeywell Aerospace lowered its outlook just weeks after issuing previous guidance, prompting concerns over the reliability of management forecasts.