Aerospace and defense company Howmet (NYSE: HWM) will be reporting earnings this Thursday before market hours. Here’s what to look for.
Howmet beat analysts’ revenue expectations last quarter, reporting revenues of $2.55 billion, up 24.1% year on year. It was an exceptional quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations.
Is Howmet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Howmet’s revenue to grow 23.9% year on year, improving from the 13.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Howmet rarely misses Wall Street’s revenue estimates.
Looking at Howmet’s peers in the aerospace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 4.3%, and Hexcel reported revenues up 8.8%, falling short of estimates by 1.3%. AAR traded down 7.2% following the results while Hexcel was also down 9.5%.
Read our full analysis of AAR’s results here and Hexcel’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the aerospace stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. Howmet is down 15% during the same time and is heading into earnings with an average analyst price target of $324.55 (compared to the current share price of $194.22).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
