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The Zacks Consensus Estimate for the company’s fourth-quarter earnings has remained steady in the past 60 days. HWM has an impressive earnings surprise history. Its earnings beat the consensus estimate in three of the preceding four quarters and met the same in one, delivering an average surprise of 5%.
Let’s see how things might have shaped up prior to the announcement.
Factors to Note
The company’s Engine products segment has been reaping the benefits from robust momentum in the commercial aerospace, defense aerospace, oil and gas, and industrial gas turbine markets. The Zacks Consensus Estimate for the segment’s revenues is pegged at $811 million, indicating a 10.8% rise from the fourth-quarter 2022 reported number.
Growth in the commercial aerospace market, including the emerging wide body recovery, and the commercial transportation market, is likely to have supported the Fastening Systems segment's fourth-quarter results. The consensus estimate for revenues in the segment is pegged at $345 million, indicating a 21.1% increase from the fourth-quarter 2022 reported number.
Strength across the commercial aerospace, defense aerospace, commercial transportation, and industrial and other markets is likely to have supported HWM’s results in the fourth quarter. The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $1.7 billion, suggesting an increase of 9.3% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at 46 cents per share, indicating a 21.1% decline from the year-ago quarter’s reported number.
However, weakness in the defense aerospace market, mainly associated with legacy fighter programs, is expected to have hurt the Engineered Structures segment in the fourth quarter. We expect the segment’s revenues to decrease 1.3% year over year to $227 million in the to-be-reported quarter.
The rising cost of sales due to raw material inflation is likely to have partially dented Howmet’s bottom line in the quarter to be reported.
Our proven model does not conclusively predict an earnings beat for HWM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Howmet has an Earnings ESP of -4.92% as the Most Accurate Estimate is pegged at 44 cents, which is lower than the Zacks Consensus Estimate of 46 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet presently carries a Zacks Rank of 2.
Highlights of Q3 Earnings
Howmet’s third-quarter 2023 adjusted earnings of 45 cents per share beat the Zacks Consensus Estimate of 43 cents. The bottom line improved 4.7% year over year. Total revenues of $1,658 million surpassed the consensus estimate of $1,599 million. The top line increased 15.7% from the year-ago quarter's level. The increase was backed by an improved commercial aerospace market.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
The company is scheduled to release fourth-quarter 2023 results on Feb 22. Alarm.com’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 35%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2023 results on Feb 15.
Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.1%.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2023 results on Feb 27.
Sealed Air’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, the average beat being 9.3%.
Image: Bigstock
What's in the Offing for Howmet (HWM) This Earnings Season?
Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release fourth-quarter 2023 earnings on Feb 13, before market open.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings has remained steady in the past 60 days. HWM has an impressive earnings surprise history. Its earnings beat the consensus estimate in three of the preceding four quarters and met the same in one, delivering an average surprise of 5%.
Let’s see how things might have shaped up prior to the announcement.
Factors to Note
The company’s Engine products segment has been reaping the benefits from robust momentum in the commercial aerospace, defense aerospace, oil and gas, and industrial gas turbine markets. The Zacks Consensus Estimate for the segment’s revenues is pegged at $811 million, indicating a 10.8% rise from the fourth-quarter 2022 reported number.
Growth in the commercial aerospace market, including the emerging wide body recovery, and the commercial transportation market, is likely to have supported the Fastening Systems segment's fourth-quarter results. The consensus estimate for revenues in the segment is pegged at $345 million, indicating a 21.1% increase from the fourth-quarter 2022 reported number.
Strength across the commercial aerospace, defense aerospace, commercial transportation, and industrial and other markets is likely to have supported HWM’s results in the fourth quarter. The consensus estimate for the company’s fourth-quarter 2023 revenues is pegged at $1.7 billion, suggesting an increase of 9.3% from the year-ago quarter’s reported figure. The consensus estimate for the company’s adjusted earnings is pinned at 46 cents per share, indicating a 21.1% decline from the year-ago quarter’s reported number.
However, weakness in the defense aerospace market, mainly associated with legacy fighter programs, is expected to have hurt the Engineered Structures segment in the fourth quarter. We expect the segment’s revenues to decrease 1.3% year over year to $227 million in the to-be-reported quarter.
The rising cost of sales due to raw material inflation is likely to have partially dented Howmet’s bottom line in the quarter to be reported.
Howmet Aerospace Inc. Price and Consensus
Howmet Aerospace Inc. price-consensus-chart | Howmet Aerospace Inc. Quote
Earnings Whisper
Our proven model does not conclusively predict an earnings beat for HWM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: Howmet has an Earnings ESP of -4.92% as the Most Accurate Estimate is pegged at 44 cents, which is lower than the Zacks Consensus Estimate of 46 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet presently carries a Zacks Rank of 2.
Highlights of Q3 Earnings
Howmet’s third-quarter 2023 adjusted earnings of 45 cents per share beat the Zacks Consensus Estimate of 43 cents. The bottom line improved 4.7% year over year. Total revenues of $1,658 million surpassed the consensus estimate of $1,599 million. The top line increased 15.7% from the year-ago quarter's level. The increase was backed by an improved commercial aerospace market.
Stocks to Consider
Here are some companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.
Alarm.com Holdings, Inc. (ALRM - Free Report) has an Earnings ESP of + 8.79% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release fourth-quarter 2023 results on Feb 22. Alarm.com’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 35%.
Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2023 results on Feb 15.
Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 16.1%.
Sealed Air Corporation (SEE - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter 2023 results on Feb 27.
Sealed Air’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, the average beat being 9.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.