Honeywell Aerospace Stock Plummets on Reduced Guidance
Honeywell Aerospace stock took a hit on Thursday after the company's second-quarter results and reduced guidance sent shockwaves through the market. The stock has been trading lower for months, with a significant drop in value over the past year.
The decline in value began after the company announced that it would be cutting its full-year guidance due to supply chain constraints. This was accompanied by a 10.43% drop in the stock price during Wednesday's after-hours session.
Despite reporting revenue of $4.52 billion, up 5% year-over-year, and adjusted earnings of $1.87 for the second quarter, Honeywell Aerospace reduced its organic revenue growth forecast to 4% to 5%, down from 7% to 9%. The company also lowered expected pro forma standalone adjusted EBITDA to $4.35 billion to $4.45 billion.
Honeywell Aerospace CEO Jim Currier explained the decision, stating that it was 'prudent' to align guidance with supply chain capabilities after the second quarter.