Honeywell Aerospace Stock Plunges After Missing Earnings Estimates

Honeywell Aerospace's stock plummeted by 23.16% in early trading on Thursday, after its first earnings report as an independent company fell short of expectations. The supplier of airplane navigation systems and engines missed quarterly earnings estimates of $2.13 per share, reporting only $1.87 instead.

The company's revenue for the quarter was $4.5 billion, which marked a 5% increase compared to what it would have collected if it were still part of parent company Honeywell (HON) last year. However, earnings declined by 32% on a pro forma basis and 71% when calculated under generally accepted accounting principles (GAAP). The official GAAP profit per diluted share was $0.78.

CEO Jim Currier attributed the decline in sales growth to supply constraints, despite strong customer demand across end markets. To address this issue, Honeywell Aerospace is adopting a conservative stance by lowering its guidance for the second half of the year, expecting no more than 5% sales growth and earnings of $7.75 per share.