Honeywell Aerospace shares sank nearly 17% before the bell on Thursday, as supply-chain issues forced it to cut its annual sales target and forecast profit below estimates.
Supply Chain Issues
The aerospace supplier, which debuted on the Nasdaq about a month ago after it was spun off from Honeywell, has said supply constraints are forcing it to prioritize deliveries to Boeing and Airbus, over its revenue and margin-boosting aftermarket business.
The aircraft engine, parts and defense systems maker expects 2026 organic sales growth of 4% to 5%, down from an earlier forecast of a 7% to 9% increase. It expects annual adjusted earnings per share of $7.60 to $7.90, below analysts’ expectation of $8.86, according to data compiled by LSEG.
Honeywell Aerospace’s second-quarter adjusted profit per share fell 32% to $1.87 compared to the previous year, while sales rose 5% to $4.52 billion, with both figures missing analysts’ expectations.
“It’s really resetting the forecast based on what we’re seeing coming through the supply chain. And that’s where we’ve been most impacted, is by the lack of ramp in that supply,” finance chief Josh Jepsen said in an interview with Reuters.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
