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Honeywell Aerospace shares plunge after guidance cut triggers selloff
The company reduced organic growth guidance to 4% to 5% and lowered pro forma standalone adjusted EBIT to $4.35 billion to $4.45 billion.
Honeywell Aerospace shares fell sharply after management cut its full-year outlook following second-quarter results, with guidance changes driving the selloff, according to Yahoo Finance.
The company trimmed organic growth expectations to a range of 4% to 5% from prior guidance of 7% to 9%, and lowered pro forma standalone adjusted EBIT to $4.35 billion to $4.45 billion from an earlier $4.65 billion to $4.75 billion range.
Adjusted EBIT growth for the year was revised to a range of flat to 3% from prior guidance of 7% to 10%, as supply-chain constraints led the company to prioritize deliveries to major planemakers including Boeing and Airbus.
Yahoo Finance also reported that Jim Cramer said the Charitable Trust sold its Honeywell Aerospace position at the opening bell after the guidance cut, following a near 28% collapse in the stock between August 4 and August 6.