We're downgrading Honeywell Aerospace after a shockingly bad earnings debut
📰 source: cnbc_topnews · 💼 business
honeywell aerospace shares tumbled 11% in extended trading wednesday after the newly public company reported weak quarterly results and cut its full-year outlook. revenue in the second quarter rose 5.4% to $4.52 billion, missing the $4.6 billion estimate, and adjusted eps fell 32% to $1.87, well below the $2.11 consensus. the company cited supply chain stumbles that are preventing it from meeting strong demand.
ceo jim currier said the ramp in output hasn't come through as fast as expected, and management cut organic sales growth guidance to 4-5% from 7-9%. pro-forma adjusted eps guidance is now $7.60-$7.90, far below the street's $8.90. cfo josh kepsen said a 2% subset of suppliers is causing the bottleneck, and fixing it will require elevated investment.
the article's author downgraded the stock to a rating of 3, citing credibility issues after the company failed to signal problems earlier. the stock fell to $182, a new low as a standalone company.
why it matters: honeywell aerospace's shock earnings miss and slashed outlook shake investor confidence in the newly public company.
source: cnbc_topnews
sentiment: -0.70 · impact: 0.60