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 $2.17 billion, up 14.6% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.
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 15.4% year on year, improving from the 6.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 4.1%, and Boeing reported revenues up 14%, topping estimates by 2.9%. AAR traded up 9.9% following the results while Boeing was also up 6.8%.
Read our full analysis of AAR’s results here and Boeing’s results here.
There has been positive sentiment among investors in the aerospace segment, with share prices up 9.9% on average over the last month. Howmet is up 3.7% during the same time and is heading into earnings with an average analyst price target of $280.65 (compared to the current share price of $245.22).
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