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The Zacks Consensus Estimate for the company’s second-quarter earnings has remained steady in the past 60 days. HWM has an impressive earnings surprise history. Its earnings beat the consensus estimate in each of the preceding four quarters, delivering an average surprise of 8.5%.
Let’s see how things have shaped up for Howmet Aerospace before the announcement.
Factors Likely to Have Shaped the Quarterly Performance
Howmet Aerospace’s Engine products segment is expected to have benefited from robust momentum in the commercial aerospace, defense aerospace and oil & gas markets. Solid demand for engine spares in aerospace markets, supported by the U.S. fighter program, is likely to have driven the segment’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $915.3 million, indicating a 10.8% rise from the second-quarter 2023 reported number.
Growth in the commercial aerospace market, including the emerging wide body recovery and the general industrial market, is likely to have supported the Fastening Systems segment's second-quarter performance. The consensus estimate for segmental revenues is pegged at $381.5 million, indicating a 16% increase from the year-ago quarter’s reported number.
Strength in the commercial and defense aerospace markets is expected to have driven the Engineered Structures segment’s performance. The consensus estimate for the segment’s revenues is pegged at $257.4 million, indicating an increase of 28.1% from the year-ago quarter’s reported figure.
However, softness in the commercial transportation market is likely to have hurt the Forged Wheels segment. The consensus estimate for the segment’s revenues is pegged at $287.1 million, indicating a decline of 3.7% from a year ago.
Escalating costs and expenses, due to raw material inflation, are also likely to have partially dented Howmet Aerospace’s bottom line.
Amid this backdrop, the Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $1.84 billion, indicating an increase of 11.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at 60 cents per share, indicating 36.4% growth from the year-ago quarter’s reported number.
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 Aerospace has an Earnings ESP of -0.20% as the Most Accurate Estimate is pegged at 59 cents, which is lower than the Zacks Consensus Estimate of 60 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet Aerospace presently carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat in the upcoming release.
Aspen Aerogels’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 68.2%.
ITT Inc. (ITT - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of 3 at present. The company is slated to release second-quarter results on Aug 1.
ITT’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.
3M Company (MMM - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter results on Jul 26.
3M’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 16.4%.
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What to Note Ahead of Howmet Aerospace's (HWM) Q2 Earnings?
Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release second-quarter 2024 earnings on Jul 30 before market open.
The Zacks Consensus Estimate for the company’s second-quarter earnings has remained steady in the past 60 days. HWM has an impressive earnings surprise history. Its earnings beat the consensus estimate in each of the preceding four quarters, delivering an average surprise of 8.5%.
Let’s see how things have shaped up for Howmet Aerospace before the announcement.
Factors Likely to Have Shaped the Quarterly Performance
Howmet Aerospace’s Engine products segment is expected to have benefited from robust momentum in the commercial aerospace, defense aerospace and oil & gas markets. Solid demand for engine spares in aerospace markets, supported by the U.S. fighter program, is likely to have driven the segment’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $915.3 million, indicating a 10.8% rise from the second-quarter 2023 reported number.
Growth in the commercial aerospace market, including the emerging wide body recovery and the general industrial market, is likely to have supported the Fastening Systems segment's second-quarter performance. The consensus estimate for segmental revenues is pegged at $381.5 million, indicating a 16% increase from the year-ago quarter’s reported number.
Strength in the commercial and defense aerospace markets is expected to have driven the Engineered Structures segment’s performance. The consensus estimate for the segment’s revenues is pegged at $257.4 million, indicating an increase of 28.1% from the year-ago quarter’s reported figure.
However, softness in the commercial transportation market is likely to have hurt the Forged Wheels segment. The consensus estimate for the segment’s revenues is pegged at $287.1 million, indicating a decline of 3.7% from a year ago.
Escalating costs and expenses, due to raw material inflation, are also likely to have partially dented Howmet Aerospace’s bottom line.
Amid this backdrop, the Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $1.84 billion, indicating an increase of 11.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings is pinned at 60 cents per share, indicating 36.4% growth from the year-ago quarter’s reported number.
Howmet Aerospace Inc. Price and EPS Surprise
Howmet Aerospace Inc. price-eps-surprise | Howmet Aerospace Inc. Quote
Earnings Whispers
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 Aerospace has an Earnings ESP of -0.20% as the Most Accurate Estimate is pegged at 59 cents, which is lower than the Zacks Consensus Estimate of 60 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet Aerospace presently carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to post an earnings beat in the upcoming release.
Aspen Aerogels (ASPN - Free Report) has an Earnings ESP of +23.53% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is slated to release second-quarter 2024 results on Aug 7.
Aspen Aerogels’ earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 68.2%.
ITT Inc. (ITT - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of 3 at present. The company is slated to release second-quarter results on Aug 1.
ITT’s earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.5%.
3M Company (MMM - Free Report) has an Earnings ESP of +2.85% and a Zacks Rank of 3 at present. The company is scheduled to release second-quarter results on Jul 26.
3M’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 16.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.