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Pittsburgh-based Howmet Aerospace Inc. (HWM) is an industrial supplier for the aerospace and transport industries. Valued at $41.4 billion by market cap, this company engineers precision components for jet engines and titanium structures that keep aircraft light, fast, and fuel-efficient, and provides forged aluminum wheels for heavy trucks. The aerospace and defense supplier is all set to unveil its Q3 earnings on Wednesday, Nov. 6 before the market opens.
Ahead of the event, analysts expect Howmet Aerospace to report a profit of $0.65 per share, up 41.3% from $0.46 per share in the year-ago quarter. The company beat the consensus estimates in all of the last four quarters. Its fiscal Q2 adjusted EPS of $0.67, up 52% year over year, beat the projections by 11.7%.
For fiscal 2024, analysts expect Howmet Aerospace to report EPS of $2.60, up 41.3% from $1.84 in fiscal 2023. Plus, looking ahead, the company’s bottom line is projected to surge 19.6% year over year to $3.11 per share in fiscal 2025.
HWM has outperformed the S&P 500 Index’s ($SPX) 38.7% gains over the past 52 weeks, with shares up 134.5% during this period. Similarly, it is also outshining the Industrial Select Sector SPDR Fund’s (XLI) 38.6% gains over the same time frame.
Howmet Aerospace has been soaring in 2024, riding the tailwinds of a booming commercial aerospace market. The company’s engine products and precision-engineered structures have become essential components as major players like Boeing and Airbus struggle to keep up with increasing aircraft demand. Howmet has capitalized on this, securing large orders from original equipment manufacturers (OEMs) and delivering spare parts for an industry in need.
On July 30, HWM spiked 13%, following Q2 earnings that exceeded expectations, with revenue hitting $1.9 billion. Commercial aerospace sales jumped 27% year-over-year, solidifying its position in this growing market. Looking ahead, Howmet forecasts continued strong performance for Q3, with projected EPS between $0.63 and $0.65, and revenue ranging from $1.85 to $1.87 billion.
In a market where precision and reliability are paramount, Howmet continues to build its legacy, staying at the forefront of the aerospace industry’s recovery and growth.
Wall Street remains optimistic about Howmet Aerospace, with a consensus “Strong Buy” rating overall. Of the 21 analysts covering the stock, 17 advise a “Strong Buy,” one gives a “Moderate Buy,” two suggest a “Hold,” and the remaining one recommends a “Strong Sell.”
The mean price target of $108.73 suggests a potential upside of 7.2% from current price levels.
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.
