Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Curtiss-Wright due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Curtiss-Wright is expected to report quarterly earnings of $3.08 per share, reflecting a year-over-year decrease of 2.5% [3]. - Revenue projections stand at $785.49 million, indicating no change from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.14% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +1.24% suggests analysts have recently become more optimistic about Curtiss-Wright's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8]. - Curtiss-Wright currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Curtiss-Wright exceeded the expected earnings of $2.70 per share by delivering $2.97, resulting in a surprise of +10% [12]. - The company has successfully beaten consensus EPS estimates in each of the last four quarters [13]. Market Dynamics - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - Despite the potential for an earnings beat, it is essential to consider additional factors before making investment decisions regarding Curtiss-Wright [16].

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.I covered Curtiss-Wright Corporation (NYSE: CW ) in May 2024 marking the stock a buy. Since then the stock price has increased by 31.3% compared to a 13% return for the S&P 500. Since I upgraded the stock from hold toDhierin runs the investing grou ...

Core Viewpoint - The second presidency of Donald Trump has significantly impacted financial markets, with defense stocks underperforming due to uncertainty about future policies, while some sectors like cryptocurrency have thrived due to presidential support [1][2]. Defense Sector Performance - Defense stocks have generally lagged behind the broader market since Trump's reelection, primarily due to uncertainty regarding his second term [2]. - The Department of Government Efficiency (DOGE), led by Elon Musk, has targeted longstanding defense programs, which adds to the uncertainty in the sector [2]. Investment Bank Insights - Citigroup has adopted a bullish stance on defense stocks, highlighting four companies that could benefit from potential policy changes under the new administration [4]. Company Summaries - **V2X Inc. (NYSE: VVX)**: - Citigroup initiated coverage with a 'Buy' rating and a price target of $64, citing potential outsourcing opportunities due to government headcount reductions [5][6]. - The stock was trading at $52.89, reflecting a 10.58% increase year-to-date, with a projected 21% upside [6]. - **Curtiss-Wright Corp (NYSE: CW)**: - Coverage initiated with a 'Buy' rating and a price target of $410, with expectations of becoming net cash positive by 2026 and 13% earnings growth through 2027 [7][8]. - The stock was trading at $375.53, having increased by 5.82% year-to-date, indicating a 9.17% upside potential [9]. - **RTX Corporation (NYSE: RTX)**: - Upgraded from 'Neutral' to 'Buy' with a price target raised to $153 from $132, supported by demand from Europe and positive commercial aftermarket commentary expected [10][11]. - The stock was priced at $122.57, showing a 5.92% increase year-to-date, with a 24.82% upside forecast [12]. - **Northrop Grumman (NYSE: NOC)**: - Upgraded to 'Buy' from 'Neutral', with a price target maintained at $587, as the stock is viewed as fairly valued after a recent selloff [13][14]. - The stock was trading at $488.10, reflecting a 4.01% increase year-to-date, with a 20.26% upside potential [15].

Group 1: Acquisition Details - Curtiss-Wright Corporation (CW) announced the acquisition of Ultra Energy for $200 million in cash, which provides safety-critical measurement and control systems to the commercial nuclear, aerospace, and defense industries [1][2] - The acquisition is expected to strengthen CW's footprint in the aerospace and defense industry by enhancing its reactor protection systems, neutron monitoring systems, and other critical technologies [2][3] - This acquisition broadens CW's worldwide commercial nuclear portfolio, supporting plant life extensions and modernization projects, and increases its presence with top small modular reactor designers in the U.S. and Europe [3] Group 2: Industry Trends - The military industry has seen a notable increase in mergers and acquisitions, driven by cost-cutting initiatives and the need to diversify portfolios to combat competition [4] - Other defense companies, such as Lockheed Martin and TransDigm, have also engaged in significant acquisitions to expand their operations and enhance product offerings [6][7] Group 3: Financial Performance - In the past six months, Curtiss-Wright's shares have risen by 29.1%, outperforming the industry's growth of 17.2% [11]

Group 1 - Curtiss-Wright (CW) has shown significant year-to-date performance, with a return of approximately 72.8%, outperforming the Aerospace sector average of 3.9% [4] - The Zacks Rank for Curtiss-Wright is currently 2 (Buy), indicating a positive earnings outlook and improving analyst sentiment [3][4] - The Zacks Consensus Estimate for CW's full-year earnings has increased by 1.6% over the past quarter, reflecting a more favorable earnings outlook [4] Group 2 - Curtiss-Wright is part of the Aerospace - Defense Equipment industry, which has seen an average gain of 39.9% this year, indicating strong performance relative to its peers [6] - In contrast, L3Harris (LHX), another outperforming stock in the Aerospace sector, has returned 5.4% year-to-date, with a Zacks Rank of 2 (Buy) [5] - The Aerospace - Defense industry, which includes L3Harris, has experienced a decline of -7.5% since the beginning of the year, highlighting the relative strength of Curtiss-Wright [6]

Curtiss-Wright Corp. (CW) offers a great investment opportunity in the Zacks Aerospace Defense Equipment industry, with rising earnings estimates, robust ROE, strong liquidity, low debt position and strong dividend history.Let us focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.Growth Projections & Surprise History of CW The Zacks Consensus Estimate for CW’s 2024 earnings per share has increased 1.4% to $10.71 per share over the past 60 days. The Zacks C ...

Shares of Curtiss-Wright Corporation (CW) lost 1.4% to reach $348.82 on Friday, following the release of its third-quarter 2024 results. The company reported adjusted earnings per share (EPS) of $2.97, which beat the Zacks Consensus Estimate of $2.70 by 10%. The bottom line also improved 16.9% from the year-ago quarter’s level of $2.54.See the Zacks Earnings Calendar to stay ahead of market-making news. The company reported GAAP earnings of $2.89 per share, up 15.1% from the prior-year period’s $2.51.The ye ...

Group 1 - The article initiates coverage on Curtiss-Wright (NYSE: CW) with a buy rating, highlighting it as an appealing investment opportunity due to its strong expertise and diversification across four sectors [1] - The company is noted for its robust management of U.S. equity portfolios, with over $700 million in assets under management, indicating a solid financial foundation [1] Group 2 - The analysis emphasizes the importance of understanding investment opportunities and the potential of innovative companies, suggesting a growth bias in identifying future leaders [1]

Have you been paying attention to shares of Curtiss-Wright (CW) ? Shares have been on the move with the stock up 2.1% over the past month. The stock hit a new 52-week high of $371.04 in the previous session. Curtiss-Wright has gained 54.8% since the start of the year compared to the -2.3% move for the Zacks Aerospace sector and the 23.3% return for the Zacks Aerospace - Defense Equipment industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn' ...

Financial Data and Key Metrics Changes - Sales increased 10% year-over-year to nearly $800 million, driven by strong performance in Defense Electronics and Naval & Power segments [13] - Operating income rose 11% year-over-year, resulting in a 20 basis points increase in overall operating margin to 18.7% [14] - Diluted earnings per share increased 17% year-over-year, primarily due to higher Aerospace & Defense sales [15] - Free cash flow was $163 million, up 19% year-over-year, reflecting over 140% conversion due to improved operational performance [15] Business Line Data and Key Metrics Changes - Aerospace & Industrial segment sales increased 4%, with strong OEM sales growth in commercial aerospace [23] - Defense Electronics segment sales grew 12%, driven by demand for tactical communications and embedded computing [25] - Naval & Power segment sales increased 14%, with over 20% growth in naval defense revenues [28] Market Data and Key Metrics Changes - Total new orders increased 2% year-over-year, with a book-to-bill ratio of 1.1 [17] - Year-to-date backlog increased 16%, reaching a record of $3.3 billion [18] - Commercial nuclear aftermarket business saw improved demand, particularly during the fall outage season [17] Company Strategy and Development Direction - The company is focused on investing in technology, systems, infrastructure, and talent to align with major growth vectors in end markets [9] - The acquisition of Ultra Energy is anticipated to close in the fourth quarter, enhancing the company's position in naval defense and power generation markets [48] - The company aims to supplement organic growth with strategic acquisitions and maintain a disciplined capital deployment strategy [47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate long-term profitable growth and achieve objectives set for 2026 [11] - The company remains optimistic about the commercial nuclear market, driven by significant investments from major tech companies [50] - Management noted that while challenges exist, the strength of the consolidated portfolio and operational excellence will support continued growth [46] Other Important Information - The company plans to complete at least $150 million in share repurchases in 2024 [20] - Updated full-year guidance reflects expected sales growth of 7% to 9% and diluted EPS growth of 12% to 15% [21][22] Q&A Session Summary Question: How is the company measuring share gain activity in Defense Electronics? - Management highlighted a record order book and consistent growth over the past two years, indicating strong execution and customer satisfaction [59][60] Question: What is the outlook for commercial nuclear growth? - Management noted that 80% of existing reactors have indicated plans for life extensions, contributing to low double-digit growth [64][65] Question: What are the drivers behind the increase in aerospace defense guidance? - The increase is primarily due to secured funding for IR&D programs and strong demand for technologies in the C5ISR space [76] Question: Is the company experiencing any negative impacts from the ongoing Continuing Resolution (CR)? - Management stated that they are not currently feeling the impact of the CR due to a strong backlog position [78] Question: What is driving margin uplift in Aerospace & Industrial? - The restructuring efforts and favorable absorption on higher sales are key drivers for margin improvement [82] Question: What is the company's position with other SMR providers? - Management emphasized efforts to establish content across all major SMR providers, including partnerships with Westinghouse and X-energy [67][68] Question: Can the company quantify potential revenues from plant life extensions and restarts? - Management indicated that restarts could generate more revenue than typical plant life extensions, but specific figures were not provided [102]