On August 6, Honeywell Aerospace Inc declined 21.43% in regular trading. The steep sell-off was triggered by the company's significant downward revision to its full-year performance guidance following the release of its second-quarter earnings.

The company slashed its organic sales growth forecast from the previous 7%-9% range down to 4%-5%, while adjusted earnings per share guidance of $7.60-$7.90 came in sharply below the analyst consensus estimate of $8.86. Management attributed the profit warning primarily to persistent supply chain bottlenecks that have constrained the company's ability to convert surging aftermarket demand into actual revenue across all end markets. The CFO noted that the commercial aftermarket is now expected to grow only in the low-to-mid single digits.

The CEO acknowledged underestimating the time required for corrective measures to take effect. Notably, only approximately 2% of the company's supplier base is classified as critical or constrained, with the vast majority delivering on schedule. Prior to the earnings release, RBC Capital Markets had raised its price target to $298, maintaining an outperform rating.

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