Honeywell stock falls after slashing earnings guidance

Shares of Honeywell (HON) are falling despite posting better-than-expected second quarter results. The company raised its full-year sales sales outlook, but cut its profit guidance.

Market Domination Hosts Julie Hyman and Josh Lipton report more on the earnings and how it may be affected by the destocking cycle.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video Transcript

Let's get to some trending tickers now.

Besides our CL, that is, that's a lead off with honey.

Well, here those shares are falling.

After the company reported second quarter earnings, it also raised its full year sales outlook but cut its earnings guidance.

It seems to be some disappointing stuff here.

Also, the profit guidance for the third quarter was below what analysts had been anticipating here, Um, you know, sales growth has been picking up a little bit for the company on them.

Who was the CEO did talk about aerospace leading growth at Honeywell.

Uh, but the the other parts of the portfolio are also doing well.

But in investors not pleased with that forecast sounds like yes, some, uh, just in Chicago.

Look at what bows are saying today.

City, for example, Telling clients.

So Q two results.

They looked over the report.

It was solid.

Um, yes, they said guidance.

They can weigh on stock in the near term here.

And you certainly see that today we're down about 5%.

They were arguing.

They expect earnings grow growth in stock price appreciation in the long term.

They still see that due to improving end markets.

Um, they call it disciplined execution, So optimistic.

Take there.

But obviously, some investors, at least today have some some worries.

Yeah, and remember we were talking about de stocking and the de stocking cycle recently.

I also saw some commentary that perhaps that's an issue, that there's still some destocking going on.

In other words, if I've got a bunch of stuff in my warehouse or wherever it is that I'm ordering from that, I'm storing it, um, maybe I'm not that eager to order new stuff.

And there again, there's been some talk that that destocking cycle, as we talked about, uh yesterday, Bank of America's O San Juan, saying the destocking cycle may be coming to an end, but of course it's not gonna be the same for every company.

That's it.