Howmet Aerospace Prepares to Reveal Robust Q3 Earnings Amid Market Growth
Pittsburgh-based Howmet Aerospace Inc. (HWM) serves as a key supplier in the aerospace and transportation sectors. With a market capitalization of $41.4 billion, the company specializes in crafting precision components for jet engines and lightweight titanium structures that enhance fuel efficiency in aircraft, as well as producing forged aluminum wheels for heavy trucks. Howmet is set to announce its Q3 earnings on Wednesday, Nov. 6, prior to market opening.
Analysts Anticipate Strong Earnings Growth
Analysts predict that Howmet Aerospace will report a profit of $0.65 per share for this quarter, reflecting a 41.3% increase from $0.46 per share in the same quarter last year. The company has consistently exceeded consensus estimates, achieving this in all of the previous four quarters. In its fiscal Q2, Howmet reported an adjusted EPS of $0.67, marking a 52% year-over-year increase that surpassed projections by 11.7%.
Positive Outlook for Fiscal 2024 and Beyond
Looking ahead to fiscal 2024, analysts forecast an EPS of $2.60, a significant jump of 41.3% from $1.84 in fiscal 2023. Expectations for fiscal 2025 are even brighter, with projections indicating an increase to $3.11 per share, a 19.6% rise year over year.
Exceptional Stock Performance Against Market Benchmarks
Over the past 52 weeks, Howmet has outperformed the S&P 500 Index, which has gained 38.7%. In contrast, HWM shares have surged by 134.5% during the same period. The company is also outpacing the Industrial Select Sector SPDR Fund (XLI), which saw 38.6% gains in that timeframe.
Capitalizing on Strong Demand in Commercial Aerospace
In 2024, Howmet has benefited greatly from the booming commercial aerospace sector. The surge in aircraft demand has led to increased orders from original equipment manufacturers (OEMs) like Boeing and Airbus. On July 30, HWM shares jumped 13% after the company announced Q2 earnings that exceeded expectations, with revenue reaching $1.9 billion. Commercial aerospace sales soared 27% year-over-year, solidifying Howmet’s place in the expanding market. For Q3, Howmet anticipates an EPS between $0.63 and $0.65 and revenue of $1.85 to $1.87 billion.
Analyst Sentiment Remains Strong
Wall Street analysts are optimistic about Howmet Aerospace, with a consensus rating of “Strong Buy.” Out of the 21 analysts monitoring the stock, 17 suggest a “Strong Buy,” one recommends a “Moderate Buy,” two advise a “Hold,” and one analyst rates it as a “Strong Sell.” The average price target stands at $108.73, indicating a potential upside of 7.2% from current levels.
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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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