During the October 7, 2016 investor call, Honeywell's (NYSE:HON) management team revised the company's Q3 2016 guidance and provided the company's Q4 2016 and full-year 2017 financial guidance. The management team painted a picture of a company that has been contending with headwinds over the last year that have not only impacted the results for the most recent quarter but that are also anticipated to impact results over the next few quarters. Honeywell's investor call left the financial community wanting more (a lot more) and as a result the company's stock price fell off a cliff on the next trading day.
(Source: Bloomberg)
The revised Q3 2016 guidance was a negative surprise, but, in my opinion, the sell-off was a direct result of the dire picture that management painted for what should be expected from Honeywell over next five quarters. I believe that management actually did investors with a long-term perspective a favor by creating an opportunity to start a position in a storied company that has great long-term business prospects.
