Honeywell Aerospace Slumps 20% After Weaker Q2 Earnings

Honeywell Aerospace's shares plummeted around 20% on Thursday after the newly independent aerospace and defense supplier reported lackluster second-quarter results and sharply reduced its full-year guidance. The company, which separated from Honeywell Technologies in June, saw revenue increase by 5% to $4.52 billion, but fell short of Wall Street's estimate of $4.6 billion.

Operating profit came in at approximately $1 billion, missing analysts' estimates of $1.1 billion and declining 7% year over year due partly to inventory obsolescence charges. Adjusted earnings were reported at $1.87 per share.

Despite modest revenue growth, investors reacted negatively to the company's revised outlook, sending shares sharply lower. Honeywell Aerospace lowered its outlook just weeks after issuing previous guidance, prompting concerns over management's reliability in forecasting.