CNBC Investing Club: Cramer’s Morning Take on Honeywell 4/23/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:28)

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Jim Cramer (1:01)

Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 10, 20 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

SPEAKER_4 (1:23)

We did have some earnings reports. We should get into Honeywell. Was they missed on the top line by 164 million, beat on the bottom line by 13 cents. Organic growth of only 2 percent. The Middle East impacted sales, which we knew it would. They said that at the JP Morgan Industrial Conference, specifically in their process automation and technology business. Half a point headwind this quarter, it's going to be a 1 percent headwind in Q2. They're guiding for the conflict to persist throughout the quarter. But really strong orders that they think are going to convert in the second half of the year gives them confidence in the long term dynamic aerospace and supply chain headwinds. One of their suppliers experienced constraints to start the end, to start the year. But a big improvement in March, a little bit of a negative surprise there. But I think the most important news here is the breakup.

June 29th now, we finally have a date.

Jim Cramer (2:18)

Accelerated breakup. Look, this was damn really badly off those earlys.

SPEAKER_4 (2:22)

Down 7.5 at one point.

Jim Cramer (2:23)

When I spoke to them, I said, listen, I don't know, I get it. You cleaned up everything, okay? It is true that there were some middies, slow down. Cleaned up everything and then you're going to give us the two pieces at the end of June? That's fantastic.

SPEAKER_4 (2:35)

Yeah. Remember, we were looking for like a Q3 timeline. So June 29th, right at the very end of 2Q there.

We'll have Investors Days in June, so we'll get to know more about the new automation business and the aerospace business. On the call, they were highlighting some of the opportunities in the automation, specifically in building technologies with the data center angle there. Not only in security, but also sensing because these data centers are going to be liquid cool, so you have to have more temperature control there.

Jim Cramer (3:09)

We've been, the analog here is DuPont. For the longest time, we kept waiting for DuPont to split, and people didn't care at all.

This now, we've got some clarity of when these guys are going to split, it's going to be this quarter. And like I said, over and over again, when you get the two pieces, it's going to be worth more than what it's selling for now.

SPEAKER_4 (3:27)

So they reaffirmed the full year outlook, 2Q guide was late, remember, some Middle East impacts there. So that's what really sent the stock down at first, but we are seeing it climb its way back. It's been a tough week, it fell alongside the GE reports, the RTX reports, which were both, by the way, really great quarters for those two companies.

Jim Cramer (3:46)

Yeah, and just remember I said yesterday you can sell it and buy it back, this is going to be very hard. You had to do that. Now, I don't think it's necessarily done going down, it can go down again. I just want to say that if you looked at RTX, you looked at GE Aerospace, these were not strong either. It's entirely possible that that's going to be this kind of situation.

SPEAKER_5 (4:06)

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