Honeywell Aerospace’s (HONA) Valuation Tells Only Part of the Story for Jim Cramer
Jim Cramer criticized Honeywell Aerospace (HONA) management, citing lack of credibility. Q2 sales rose 5% to $4.5B, with aftermarket revenue up 8%. Backlog increased 9% to $18.2B. HONA trades at 19.2x forward earnings, lower than peers. Guidance was cut due to supply-chain issues, with full-year organic sales growth now 4-5% and adjusted EBIT forecast lowered to $4.35B-$4.45B.
How this was made
The 30-second read
Why it matters
The guidance reduction and lower EBIT forecast are likely to weigh on the stock, though the valuation discount relative to peers could attract value‑oriented investors.
Market read
The article provides a recap of already‑public earnings data, offering limited new trading insight; the primary effect is potential short‑term pressure on HONA.
What to watch
Potential upside from the new Saudi defense deal and aftermarket demand growth.
Background
Honeywell Aerospace recently separated from its parent and reported Q2 results with a 5% YoY sales increase but cut full‑year guidance due to supply‑chain issues.
Ticker impact
Article recaps Honeywell Aerospace's Q2 results and reduced full-year guidance, which were already public on Aug 5, providing no new data.
likely downside as market prices in weaker guidance
Guidance cut and EBIT reduction are material negatives for investors.
Market effects
Aerospace sector may see modest pressure as peers compare valuations.
U.S. aerospace stocks could face slight pullback.
Limited; primarily affects U.S. listed aerospace equities.
Counterpoint
Some investors may view the valuation discount as a buying opportunity if the company can resolve supply constraints.
Key entities
- CompanyHoneywell Aerospace Inc.
U.S. aerospace manufacturer (NASDAQ:HONA) that reported Q2 results and cut guidance.
