Honeywell Aerospace Inc. (NASDAQ:HONA) is the aerospace spinoff of former conglomerate Honeywell International. With Cramer having openly admitted that he has a bias for aerospace stocks, it wasn't unsurprising that he was one of the spinoff's biggest supporters before it occurred. While most of his attention was focused on the firm's quantum computing spinoff, he nevertheless defended the conglomerate after multiple less-than-stellar earnings reports.
However, as Honeywell Aerospace Inc. (NASDAQ:HONA)'s dropped on August 6th, here's what Cramer said in the morning: "Let me talk about Honeywell Aerospace, because we owned Honeywell and we got some of this. And we sold it because, not because the company missed. But I think the company missed because they were hopeful.
There were multiple opportunities to let shareholders know that there were supply chain problems that would cause them to miss the quarter. They waited, and waited, and waited, and didn't tell us until they reported. I think that was ill-advised, an ill-advised way to disseminate the information.
"The problems at Honeywell were actually systemic. They were really, really bad. There were many suppliers, even though it was just a couple of small percent.
The cut was so big that the credibility of the company is in question. . .I spoke with management, it's funny Carl, I spoke with management. . .there would have been a time. . .where people would have said, oh my god, this is terrible. It was not dishonesty, it just was new. It was a rookie mistake. . .they should have realized, look we're just being hopeful. . .suboptimal way to report. . ." Later, Cramer added that he would have preferred a preannouncement like IBM.
The results that he was talking about were Honeywell Aerospace Inc. (NASDAQ:HONA)'s second quarter earnings report released on the 5th. It saw Honeywell Aerospace Inc. (NASDAQ:HONA) miss analyst revenue and earnings estimates. More importantly, the firm also lowered full year 2026 organic sales growth forecast to 4% to 5% from an earlier 7% to 9%.
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