Curtiss-Wright (CW) reported quarterly earnings of $2.97 per share, outpacing the Zacks Consensus Estimate of $2.70 per share and marking an increase from last year’s earnings of $2.54 per share. These earnings figures exclude non-recurring items.
A Solid Earnings Surprise
This quarter’s report reflects an earnings surprise of 10%. In the prior quarter, analysts anticipated earnings of $2.24 per share, yet the actual earnings came in at $2.67, resulting in a notable surprise of 19.20%.
Consistent Performance and Revenue Growth
Across the last four quarters, Curtiss-Wright has consistently surpassed consensus earnings per share estimates. The company, part of the Zacks Aerospace – Defense Equipment sector, recorded revenues of $798.92 million for the quarter ending September 2024, which exceeds the Zacks Consensus Estimate by 5.35%. Comparatively, revenue reached $724.33 million in the same period last year. Like its earnings, the company has also topped revenue expectations for the past four quarters.
Looking Ahead: Investor Sentiment
The immediate price movement of Curtiss-Wright shares, following these recent results and future earnings projections, will heavily rely on insights provided during the earnings call.
Since the start of 2024, Curtiss-Wright shares have risen approximately 58.9%, significantly outperforming the S&P 500, which saw a gain of 22.3% in the same period.
What’s Next for Curtiss-Wright?
With strong performance thus far in the year, investors are keen to know the stock’s future path. The company’s earnings outlook serves as a critical metric in this evaluation. This includes current consensus earnings projections for upcoming quarters along with any recent changes to those expectations.
Research indicates a solid link between short-term stock movements and earnings estimate revisions. Investors can monitor these changes individually or use a reputable rating system like the Zacks Rank, known for its successful track record in harnessing the effects of earnings estimate revisions. Currently, the outlook for Curtiss-Wright shows favorable trends in earnings revisions, resulting in a Zacks Rank #1 (Strong Buy), suggesting the stock is likely to outperform in the near term.
Analysts expect the next quarter’s consensus EPS estimate to be $3.22, with revenues projected at $793.79 million. For the current fiscal year, EPS is expected to be $10.58, with revenues expected to reach $3.05 billion.
Industry Context
It’s also important for investors to consider the industry outlook, as it can significantly influence stock performance. Currently, the Aerospace – Defense Equipment sector is positioned in the bottom 34% of over 250 Zacks industries. Historical data shows that the top half of Zacks-ranked industries tend to outperform the bottom half by more than two to one.
Peer Observations: TransDigm Group
Another company in the same industry, TransDigm Group (TDG), has yet to report results for the quarter ending September 2024, with a release date set for November 7. The company is projected to report quarterly earnings of $9.25 per share, reflecting a year-over-year increase of 15.2%. However, the consensus EPS estimate has seen a 1.3% downward revision over the last month. Expected revenues for TransDigm Group stand at $2.16 billion, a 16.8% rise compared to last year’s quarter.
Should You Invest in Curtiss-Wright (CW)?
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Curtiss-Wright Corporation (CW): Free Stock Analysis Report
TransDigm Group Incorporated (TDG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
