The aerospace and defense sector was shocked, on Friday, October 7, to see Honeywell cut their sales and earnings forecasts for this year unexpectedly. The US industrial conglomerate made this move after their commercial aircraft business experienced a significant decline in orders.

The company’s shares dropped to $106.94, representing a 7.5 percent decline, which is the stock`s most significant slide since August 2011 and represents the lowest closing price since the beginning of March.

Other company shares that are similarly exposed to the aviation market also experienced selling pressure, such as United Technologies, which Honeywell tried to buy this year, General Electric,

Triumph Group and Parker Hannifin. Thus, United Technologies saw their shares drop by 1.5 percent, General Electric experienced a decline of 0.7 percent, Parker- Hannifin went down by 1.8 percent and Triumph Group slid a hefty 5.2 percent.

The SP aerospace and defense sector index also suffered, going down to 774.73, which represents a drop of 0.8 percent.

Honeywell explained that it is expecting Q3 earnings per share to reach $1.6 compared to the previous prediction of $1.67 to $1.72, while sales are predicted to total $9.8 billion compared to the initial forecast of $10 billion $10.2 billion.

Guidance for adjusted annual earnings was also adjusted, with the company lowering the top of their range from $6.7 to $6.64, with the new range being $6.6  $6.64.

In a call with analysts on Friday, the chief financial officer of Honeywell, Thomas Szlosek, explained that conditions are harsher than expected across the aerospace industry, most specifically in the after-market and the business jet original equipment manufacturer (OEM) businesses.

The oil gas industry`s weakness has been affecting the company`s commercial helicopter business, residing in defense and space, and business jet flying hours. Revenue growth has also slowed down temporarily due to unusually high customer productivity solutions and inventory levels.

In other news, Gap saw their shares rise after the US retailer posted positive sales figures in September for their Old Navy brand.

The vital retail metric of same-store sales grew by 4 percent in September for Old Navy. The actual growth figure is 6 percent if the impact of a fire that hit an upstate New York distribution centers isn`t taken into account. This is a significant improvement over forecasts, which were expecting a rise of 0.7 percent, as well as the figure of 4 percent achieved in September last year.

Richard Jaffe, an analyst at Stifel, stated that Old Navy`s results are heartening and the product line-up for the fall is attractive and has a good assortment.

Analysts monitor Old Navy`s performance closely because of the pressure the higher-end brand, along with Banana Republic, has experienced as consumers are shifting towards purchasing from discount retailers, and also due to quick fashion groups that want to imitate styles from runways but without spending too much money.

Despite this, Jaffe stated the Gap isn`t out of the woods yet because near-term challenges are expected for the Banana Republic and Gap divisions, even with all the management`s hard work to create a better product.

Gap shares rose, on Friday, to $26.25, indicating a 15.2 percent increase, but still lower by 7.5 percent versus the price at the same time last year. Gap will be releasing their earnings for the quarter around the middle of November.

The SP 500 dropped to 2,153.7 at the close of trade, representing a decline of 0.3 percent. The Dow Jones Industrial Average reached 18,240.5, declining by 0.2 percent, while the Nasdaq Composite slipped by 0.3 percent, reaching 5,292.4.

The aerospace and defense sector was shocked, on Friday, October 7, to see Honeywell cut their sales and earnings forecasts for this year unexpectedly. The US industrial conglomerate made this move after their commercial aircraft business experienced a significant decline in orders.us companies company site firm company co company

The company`s shares dropped to $106.94, representing a 7.5 percent decline, which is the stock`s most significant slide since August 2011 and represents the lowest closing price since the beginning of March.

Other company shares that are similarly exposed to the aviation market also experienced selling pressure, such as United Technologies, which Honeywell tried to buy this year, General Electric,

Triumph Group and Parker Hannifin. Thus, United Technologies saw their shares drop by 1.5 percent, General Electric experienced a decline of 0.7 percent, Parker- Hannifin went down by 1.8 percent and Triumph Group slid a hefty 5.2 percent.

The SP aerospace and defense sector index also suffered, going down to 774.73, which represents a drop of 0.8 percent.

Honeywell explained that it is expecting Q3 earnings per share to reach $1.6 compared to the previous prediction of $1.67 to $1.72, while sales are predicted to total $9.8 billion compared to the initial forecast of $10 billion – $10.2 billion.

Guidance for adjusted annual earnings was also adjusted, with the company lowering the top of their range from $6.7 to $6.64, with the new range being $6.6 – $6.64.

In a call with analysts on Friday, the chief financial officer of Honeywell, Thomas Szlosek, explained that conditions are harsher than expected across the aerospace industry, most specifically in the after-market and the business jet original equipment manufacturer (OEM) businesses.

The oil gas industry`s weakness has been affecting the company`s commercial helicopter business, residing in defense and space, and business jet flying hours. Revenue growth has also slowed down temporarily due to unusually high customer productivity solutions and inventory levels.

In other news, Gap saw their shares rise after the US retailer posted positive sales figures in September for their Old Navy brand.

The vital retail metric of same-store sales grew by 4 percent in September for Old Navy. The actual growth figure is 6 percent if the impact of a fire that hit an upstate New York distribution centers isn`t taken into account. This is a significant improvement over forecasts, which were expecting a rise of 0.7 percent, as well as the figure of 4 percent achieved in September last year.

Richard Jaffe, an analyst at Stifel, stated that Old Navy`s results are heartening and the product line-up for the fall is attractive and has a good assortment.

Analysts monitor Old Navy`s performance closely because of the pressure the higher-end brand, along with Banana Republic, has experienced as consumers are shifting towards purchasing from discount retailers, and also due to quick fashion groups that want to imitate styles from runways but without spending too much money.

Despite this, Jaffe stated the Gap isn`t out of the woods yet because near-term challenges are expected for the Banana Republic and Gap divisions, even with all the management`s hard work to create a better product.

Gap shares rose, on Friday, to $26.25, indicating a 15.2 percent increase, but still lower by 7.5 percent versus the price at the same time last year. Gap will be releasing their earnings for the quarter around the middle of November.

The SP 500 dropped to 2,153.7 at the close of trade, representing a decline of 0.3 percent. The Dow Jones Industrial Average reached 18,240.5, declining by 0.2 percent, while the Nasdaq Composite slipped by 0.3 percent, reaching 5,292.4.