Why Honeywell Aerospace Stock Crashed After Earnings

Honeywell Aerospace (NASDAQ: HONA) banal plunged 20.8% done 9:50 a.m. ET successful aboriginal trading connected the Nasdaq Thursday, aft missing connected its archetypal net study since spinning disconnected from genitor institution Honeywell (NASDAQ: HON) successful June.

The supplier of airplane navigation systems, engines, and powerfulness systems was expected to study net of $2.13 per stock successful pro forma Q2 2026 results, but could lone muster up $1.87. Revenue for the 4th was $4.5 billion.

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Honeywell Aerospace's archetypal autarkic net study

Honeywell grew its income 5%, comparative to what it would person collected had it been a stand-alone institution 1 twelvemonth ago. Earnings for the 4th -- connected the aforesaid metric -- declined 32% pro forma, portion net calculated nether mostly accepted accounting principles (GAAP) tumbled 71%.

The authoritative GAAP nett per diluted stock was lone $0.78.

What's adjacent for Honeywell stock?

So that's wherever things basal today. What astir the future?

"Secular trends crossed our extremity markets stay strong," and Honeywell Aerospace is seeing "significant lawsuit demand," says CEO Jim Currier, albeit "supply constraints" are limiting income maturation for the clip being. So adjacent with backlog increasing a stronger-than-sales-growth 9% successful the quarter, Honeywell Aerospace is adopting a blimpish stance successful its guidance.

It's lowering expectations, and telling investors to expect nary much than 5% income maturation successful the 2nd fractional of this year, with H2 net of possibly $7.75 per stock and H2 escaped currency travel betwixt $1 cardinal and $1.5 billion.

Annualized, that makes for possibly a 10 P/E banal -- but trading for person to 20 times yearly FCF, which I admit gives maine pause. For the clip being, I'm calling Honeywell Aerospace a "wait and see" stock. I'd clasp it, but I wouldn't unreserved retired and bargain it conscionable yet.

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