HONA
Another day, another bruise
Honeywell Aerospace stock kept sliding Thursday after Evercore ISI left its In-Line rating in place but shaved its price target to $210. Translation: the Street isn’t exactly sprinting to the exits, but it’s definitely not throwing confetti either.
The real culprit is still the same one from Wednesday’s after-hours faceplant: guidance got cut. And once a company starts talking about supply chain constraints, investors hear the financial equivalent of, “We’ll get there when we get there.”
The numbers looked fine... until they didn’t
For the second quarter, Honeywell Aerospace reported:
- Revenue of $4.52 billion, up 5% year over year
- Adjusted earnings of $1.87
That sounds decent on the surface. But the market wasn’t buying the cake when the frosting came off the top-line outlook.
Management lowered:
- Organic revenue growth to 4% to 5%, from 7% to 9%
- Pro forma standalone adjusted EBITDA to $4.35 billion to $4.45 billion, from $4.65 billion to $4.75 billion
CEO Jim Currier basically said the company was aligning its forecast with what the supply chain can actually deliver by the end of the year. Helpful? Sure. Sexy? Not even a little.
Why investors care
This is the kind of move that can reset a stock’s narrative fast. Honeywell Aerospace is a fresh spinoff, so investors are still trying to figure out whether it’s a sleek new standalone story or just Honeywell with a new jersey.
So far, the stock says: nervous. It was down sharply on Thursday, with the latest print showing shares around $162.04, and momentum indicators still flashing red.
Big picture: when guidance falls, analysts tend to follow, and when analysts follow, the stock usually gets another reminder that the market is ruthless about earnings visibility.