Honeywell Aerospace Shares Fall 11% After Hours to $182 on First Post-Spinoff Report
Honeywell Aerospace reported its first quarterly results since being spun off from Honeywell Technology Group at the end of June. Shares fell 11% in after-hours trading Wednesday, adding to a 6% decline in the regular session, pushing the stock to $182, a new low since the spinoff. Electronic Solutions revenue rose 8% but adjusted EBIT fell 3%; Engine and Power Systems revenue rose 1% but segment profit fell 32%; Controls revenue rose 7% with adjusted EBIT up 8%. The company cut full-year guidance, citing supply rather than demand issues. New orders rose 8%, with year-to-date order lifetime value of $15 billion.
Honeywell Aerospace, spun off from Honeywell Technology Group at the end of June and focused on cockpit systems and other aircraft components, saw its shares fall 11% in after-hours trading Wednesday after releasing its first quarterly report since the separation. Combined with a 6% decline in the regular session, the stock dropped to $182, a new low since the spinoff listing.
By segment, Electronic Solutions revenue rose 8% year over year, spanning avionics, navigation and sensor products, electromagnetic defense solutions, and space-related revenue, though adjusted earnings before interest and taxes for the segment fell 3% year over year. Engine and Power Systems revenue grew 1% year over year, with growth in commercial original equipment shipments offset by lower defense and space shipments; segment profit fell 32% year over year. Controls revenue rose 7% year over year, and adjusted EBIT increased 8%, driven mainly by growth in commercial aftermarket sales and price increases that covered higher costs.
The company has more than 3,000 suppliers, 98% of which are performing well, with the remaining 2% causing bottlenecks.
Honeywell Aerospace lowered its full-year guidance. It also reported that new orders rose 8% year over year, with year-to-date new orders carrying a lifetime value of $15 billion, indicating strong demand. The earnings decline reflects supply issues rather than demand issues.