Aerospace and defense company Howmet (NYSE:HWM) will be reporting results tomorrow before market hours. Here’s what to look for.
Howmet missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.84 billion, up 10.7% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates.
Is Howmet a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Howmet’s revenue to grow 8.5% year on year to $1.88 billion, slowing from the 14.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Howmet has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Howmet’s peers in the aerospace segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 25.8%, beating analysts’ expectations by 4.8%, and Woodward reported a revenue decline of 1.8%, in line with consensus estimates. AAR traded up 8.6% following the results while Woodward was down 1.8%.
Read our full analysis of AAR’s results here and Woodward’s results here.
Investors in the aerospace segment have had steady hands going into earnings, with share prices flat over the last month. Howmet is up 9% during the same time and is heading into earnings with an average analyst price target of $129.85 (compared to the current share price of $129.32).
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