Honeywell Aerospace Stock Under Fire from Jim Cramer Amid Supply Constraints
Honeywell Aerospace's (HONA) performance has been under fire from Jim Cramer, who said he can't counsel owning the stock. In August and September, Cramer criticized CEO Jim Currier for his company's poor results, calling them 'terrible' and 'horrible'.
On August 5, Honeywell Aerospace reduced its 2026 organic sales-growth forecast to 4-5% from 7-9%, citing supply constraints. The second-quarter adjusted EPS fell 32% to $1.87, while sales increased 5% to $4.52 billion.
Currier attributed the supply issues to about 70 suppliers that were not producing quality products on time. He said Honeywell had sent skilled workers to two suppliers, helping them add shifts, and output at those facilities had increased approximately 30% year-over-year during the previous 30-45 days.
The company's ability to address these issues will be crucial in maintaining its earnings trajectory as a standalone company. Melius Research analyst Scott Mikus downgraded Honeywell Aerospace to Hold from Buy, citing concerns about the sustainability of elevated aftermarket performance as aircraft production recovers and older aircraft retire.