Honeywell Aerospace Stock Crashes After Missing Earnings Expectations

Honeywell Aerospace's stock plummeted by 20.8% in early trading on Thursday after releasing its first earnings report as an independent company, missing expectations and lowering revenue growth guidance.

The supplier of airplane navigation systems, engines, and power systems reported earnings of $1.87 per share, short of the predicted $2.13, on revenue of $4.5 billion for the quarter.

CEO Jim Currier attributed the lower-than-expected results to supply constraints limiting sales growth, but noted that secular trends in their end markets remain strong and customer demand is significant.

Honeywell Aerospace has adopted a conservative stance in its guidance, predicting no more than 5% sales growth in the second half of this year and earnings of $7.75 per share, with free cash flow between $1 billion and $1.5 billion.