FORM 10-Q Commission File Number 1-3610 201 Isabella Street, Suite 200, Pittsburgh, Pennsylvania 15212-5872 (Address of principal executive offices) (Zip code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ✓ N ...

Group 1 - Howmet Aerospace reported better-than-expected sales and profits for Q2, leading to a significant increase in its stock price [1][5] - The company raised its full-year guidance, driven by strong demand trends in commercial aerospace due to high travel demand and an aging aircraft fleet [2][8] - Howmet's Q2 revenue reached $1.88 billion, a 14% increase year-over-year, with commercial aerospace sales rising 27% [6] Group 2 - The company’s earnings per share (EPS) for Q2 were 65 cents, surpassing consensus estimates of 60 cents [6] - Howmet's board authorized a $2 billion increase in its share buyback program after repurchasing $60 billion worth of shares in Q2, and also raised its dividend [4][5] - The current full-year EPS guidance is projected to be between $2.53 and $2.57, with revenue expectations of $7.4 billion to $7.48 billion, both exceeding current consensus forecasts [8]

Howmet is a relatively new public company with a long history. The company is a manufacturer of components for aircraft and jet engines as well as aluminum wheels for heavy trucks. It was forged together by Alcoa 20 years ago, only to be spun out first as part of Arconic and then as Howmet. Investors are buying in, sending shares of Howmet up 14% as of 10:15 a.m. ET. The company earned $0.67 per share on revenue of $1.88 billion in the second quarter, topping Wall Street's $0.60 per share on sales of $1.84 ...

Howmet (HWM) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.60 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 11.67%. A quarter ago, it was expected that this maker of engineered products for the aerospace and other industries would post earnings of $0.52 per share when it actually produced earnings of $0.57, delivering a surprise o ...

Revenue and Income - Revenue of $1.88 billion, up 14% year over year, primarily driven by a 27% increase in commercial aerospace[10] - Net income of $266 million, or $0.65 per share, compared to $193 million, or $0.46 per share in Q2 2023[6] - Total sales for the quarter ended June 30, 2024, reached $1,880 million, an increase of 14.1% from $1,648 million in the same quarter of 2023[58] - Net income for Q2 2024 was $266 million, compared to $193 million in Q2 2023, reflecting a 37.9% year-over-year growth[79] - Diluted earnings per share (EPS) for Q2 2024 increased to $0.65, up from $0.46 in Q2 2023, marking a 41.3% rise[79] Adjusted EBITDA and Margins - Adjusted EBITDA excluding special items of $483 million, up 31% year over year, with an adjusted EBITDA margin of 25.7%[7] - Adjusted EBITDA for Q2 2024 was $489 million, compared to $355 million in Q2 2023, indicating a 37.6% increase[79] - Adjusted EBITDA margin excluding special items was 25.7% for the quarter ended June 30, 2024, compared to 22.3% for the same quarter in 2023[54] - Operating income margin of 21.2%, up approximately 390 basis points year over year[6] - Operating income margin improved to 21.2% in Q2 2024, up from 17.3% in Q2 2023[79] Cash Flow and Capital Expenditures - Free cash flow generated was $342 million in Q2 2024[7] - Free cash flow for the six months ended June 30, 2024, was $437 million, compared to $574 million for the same period in 2023, reflecting a decrease[48] - Cash provided from operations for the six months ended June 30, 2024, was $574 million, significantly higher than $252 million for the same period in 2023[62] - Capital expenditures for the six months ended June 30, 2024, totaled $137 million, compared to $105 million for the same period in 2023[62] Shareholder Returns - Share repurchase program increased by $2 billion to a total of $2.487 billion[5] - The company repurchased approximately $60 million of common stock in Q2 2024, retiring about 0.73 million shares[26] - A quarterly dividend of $0.08 per share was declared, marking a 60% increase from the previous dividend of $0.05 per share[28] - Quarterly dividend increased by 60% to $0.08 per share for Q3 2024[5] Segment Performance - Engine Products revenue of $933 million, up 14% year over year, with a record adjusted EBITDA of $292 million[23] - Fastening Systems revenue of $394 million, an increase of 20% year over year[14] - Engineered Structures revenue of $275 million, an increase of 38% year over year[15] - Fastening Systems third-party sales increased from $329 million in Q2 2023 to $394 million in Q2 2024, reflecting a growth of 19.8%[24] - Engineered Structures third-party sales rose from $200 million in Q2 2023 to $275 million in Q2 2024, representing a 37.5% increase[24] - Forged Wheels third-party sales decreased from $298 million in Q2 2023 to $278 million in Q2 2024, a decline of 6.7%[24] Financial Position - Total assets increased from $10,428 million as of December 31, 2023, to $10,679 million as of June 30, 2024[40] - Total liabilities rose slightly from $6,391 million at the end of 2023 to $6,402 million by mid-2024[40] Future Projections - The company expects revenue for 2024 to range from $7.400 billion to $7.480 billion, with Adjusted EBITDA projected between $1.855 billion and $1.875 billion[30] - The company anticipates revenue for Q3 2024 to be between $1.845 billion and $1.865 billion[89] - Adjusted earnings per share for Q3 2024 are projected to be between $0.63 and $0.65[89]

Analysts and investors alike will be keeping a close eye on the performance of Howmet in its upcoming earnings disclosure. The company's earnings report is set to go public on July 30, 2024. The company's upcoming EPS is projected at $0.60, signifying a 36.36% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.84 billion, up 11.51% from the year-ago period. Our research suggests that these changes in estimates have a direct r ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $1.84 billion, up 11.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.63% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassess ...

Core Insights - Babcock International Group PLC (BCKIY) has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Howmet (HWM) has a Zacks Rank of 3 (Hold) [1] - BCKIY's forward P/E ratio is 12.81, significantly lower than HWM's forward P/E of 33, suggesting BCKIY may be undervalued [2] - BCKIY has a PEG ratio of 0.29, indicating strong expected earnings growth relative to its price, while HWM's PEG ratio is 1.43 [2] - BCKIY holds a Value grade of B, whereas HWM has a Value grade of D, further supporting BCKIY as a better value option [3] - The Zacks Rank model highlights BCKIY's improving earnings outlook, making it a standout choice for value investors [7] Valuation Metrics - BCKIY's P/B ratio is 7.54, which is slightly lower than HWM's P/B ratio of 7.99, indicating a more favorable valuation relative to book value [6] - The analysis emphasizes the importance of various valuation metrics, including P/E, P/S, earnings yield, and cash flow per share, to identify undervalued companies [9] - The combination of a strong Zacks Rank and favorable Value grade is suggested as an effective strategy for identifying great value opportunities [4]

Shares of the maker of engineered products for the aerospace and other industries have appreciated by 0.37% over the course of the past month, underperforming the Construction sector's gain of 0.98% and the S&P 500's gain of 3.78%. Investors should also note any recent changes to analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations an ...

Core Viewpoint - Babcock International Group PLC (BCKIY) is currently viewed as a superior value opportunity compared to Howmet (HWM) based on various valuation metrics and an improving earnings outlook [2][5]. Valuation Metrics - BCKIY has a P/B ratio of 7.10, while HWM has a P/B ratio of 8.02, indicating that BCKIY is more favorably valued in terms of market value versus book value [4]. - The forward P/E ratio for BCKIY is 12.05, significantly lower than HWM's forward P/E of 33.14, suggesting that BCKIY is undervalued relative to its earnings potential [8]. - BCKIY has a PEG ratio of 0.27, which is much lower than HWM's PEG ratio of 1.44, indicating that BCKIY offers better value when considering expected earnings growth [8]. - The Value grade for BCKIY is B, while HWM has a Value grade of D, further supporting the conclusion that BCKIY is the more attractive investment option [9]. Earnings Outlook - BCKIY has an improving earnings outlook, which is a positive indicator for investors, as reflected in its Zacks Rank of 2 (Buy) compared to HWM's Zacks Rank of 3 (Hold) [2][5].