During the August 6 episode of Mad Money, a caller asked host Jim Cramer about Honeywell Aerospace Inc. (NASDAQ:HONA) following a steep, near 28% collapse in the stock between August 4 and August 6. Cramer revealed that the Charitable Trust immediately unloaded the position at the opening bell. He stated:
It really hurt us. Both Phil LeBeau and I were stunned. Phil said three times that they could've told us that things were bad. I called the management, and I said, management called me back, and said, look, I said, listen, I think it's a very suboptimal situation.
I really don't like the situation. I think that the company should have been much more forthcoming. I think it was a rookie mistake. We sold the stock at the opening for the Charitable Trust. It is a great company, but man, they are not ready for prime time, and it was very disappointing.
The sudden plunge caught institutional investors and **** ysts off guard, landing the newly minted standalone company in Wall Street's penalty box. Honeywell Aerospace Inc. (NASDAQ:HONA) watched its shares implode after management slashed its full-year outlook following the second-quarter results.
The core catalyst behind the selloff was a severe downgrade to the corporate financial roadmap. Management aligned full-year forecasts with supply-chain capabilities, scaling back expectations across some major financial metrics. Organic growth guidance was reduced to a range of 4% to 5%, compared to previous guidance of 7% to 9%. Pro forma standalone adjusted EBIT was lowered to a range of $4.35 billion to $4.45 billion, down from earlier projections of $4.65 billion to $4.75 billion. In addition, year-over-year adjusted EBIT growth was revised to a range of flat to 3%, down from prior guidance of 7% to 10%. Persistent supply-chain constraints forced the company to prioritize original equipment manufacturer deliveries to major planemakers like Boeing and Airbus. As a result, production was diverted away from higher-revenue, higher-margin aftermarket operations, squeezing profitability right out of the gate as an independent entity.
#management #guidance #range #cramer
It really hurt us. Both Phil LeBeau and I were stunned. Phil said three times that they could've told us that things were bad. I called the management, and I said, management called me back, and said, look, I said, listen, I think it's a very suboptimal situation.
I really don't like the situation. I think that the company should have been much more forthcoming. I think it was a rookie mistake. We sold the stock at the opening for the Charitable Trust. It is a great company, but man, they are not ready for prime time, and it was very disappointing.
The sudden plunge caught institutional investors and **** ysts off guard, landing the newly minted standalone company in Wall Street's penalty box. Honeywell Aerospace Inc. (NASDAQ:HONA) watched its shares implode after management slashed its full-year outlook following the second-quarter results.
The core catalyst behind the selloff was a severe downgrade to the corporate financial roadmap. Management aligned full-year forecasts with supply-chain capabilities, scaling back expectations across some major financial metrics. Organic growth guidance was reduced to a range of 4% to 5%, compared to previous guidance of 7% to 9%. Pro forma standalone adjusted EBIT was lowered to a range of $4.35 billion to $4.45 billion, down from earlier projections of $4.65 billion to $4.75 billion. In addition, year-over-year adjusted EBIT growth was revised to a range of flat to 3%, down from prior guidance of 7% to 10%. Persistent supply-chain constraints forced the company to prioritize original equipment manufacturer deliveries to major planemakers like Boeing and Airbus. As a result, production was diverted away from higher-revenue, higher-margin aftermarket operations, squeezing profitability right out of the gate as an independent entity.
#management #guidance #range #cramer
3 months ago
