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Pittsburgh, Pennsylvania-based Howmet Aerospace Inc. (HWM) provides advanced engineered solutions for the aerospace and transportation industries. Valued at $49.5 billion by market cap, Howmet focuses on manufacturing jet engine components, aerospace fastening systems, titanium structural parts necessary for mission-critical performance and efficiency in aerospace and defense applications, and forged wheels for commercial transportation.
Howmet is set to unveil its fourth-quarter results before the market opens on Thursday, Feb. 13. Ahead of the event, analysts expect the HWM to report a non-GAAP profit of $0.71 per share, up a staggering 34% from $0.53 per share reported in the year-ago quarter. Furthermore, the company has surpassed analysts’ bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 54.3% year-over-year to $0.71, exceeding analysts’ estimates by 9.2%.
For the full fiscal 2024, analysts expect Howmet to deliver an adjusted EPS of $2.66, up 44.6% from $1.84 in fiscal 2023. While in fiscal 2025, its earnings are expected to increase 19.6% year-over-year to $3.18 per share.
HWM stock prices have soared 129.2% over the past 52-week period, substantially outperforming the Industrial Select Sector SPDR Fund’s (XLI) 23.4% returns and the S&P 500 Index’s ($SPX) 24.6% surge during the same time frame.
Howmet Aerospace’s stock prices soared 12.4% after the release of its impressive Q3 results on Nov. 6. While the commercial transportation revenues observed a dip, its commercial aerospace revenues surged nearly 17%, which led to a robust 10.7% year-over-year growth in total revenues, reaching $1.8 billion. Meanwhile, the company showcased impressive expense discipline which led to a staggering 76.6% year-over-year growth in GAAP-based net income to $332 million. Additionally, the company has also observed a significant growth in free cash flows.
While Howmet expects the commercial transportation market to remain soft until Q2 2025, it expects the commercial aerospace market to remain robust because of healthy growth in air traffic. And expects an above-trend growth in commercial aerospace throughout the fiscal 2025.
Moreover, analysts remain strongly bullish on the stock’s prospects. HWM has a consensus “Strong Buy” rating overall. Out of the 21 analysts covering the stock, 17 recommend “Strong Buy,” one advises “Moderate Buy,” two suggest “Hold” and one advocates a “Strong Sell” rating. As of writing the stock is trading slightly below its mean price target of $124.50.
