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].

Group 1: Company Performance and Growth Drivers - Howmet is experiencing growth due to an expanding defense budget, which is a catalyst for the company alongside its strong position in the commercial aerospace market [1][8] - The demand for wide-body aircraft is increasing, which supports original equipment manufacturer (OEM) spending and drives Howmet's sales as airlines purchase more aircraft [7] - In 2023, Howmet's shares gained 45.6%, outperforming the industry growth of 18.1% [9] Group 2: Financial Metrics and Shareholder Returns - In the first three months of 2024, Howmet paid out $21 million in dividends and repurchased shares worth $150 million, with a planned 40% increase in the dividend rate to 7 cents per share in Q3 2024 [2] - The cost of goods sold increased by 16.3% year over year to $4.8 billion in 2023, and selling, general, administrative, and other expenses rose by 15.6% due to higher employment costs and legal fees [10] Group 3: Market Risks - Howmet's international operations expose the company to risks from adverse currency fluctuations, particularly if the U.S. dollar strengthens, which could impact profit margins [3]

Investors interested in Engineering - R and D Services stocks are likely familiar with Babcock International Group PLC (BCKIY) and Howmet (HWM) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisio ...

In the latest trading session, Howmet (HWM) closed at $78.63, marking a -1.88% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq decreased by 1.09%. Market participants will be closely following the financial results of Howmet in its upcoming release. On that day, Howmet is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 36.36% ...

Core Viewpoint - Howmet (HWM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook due to rising earnings estimates, which are a significant factor influencing stock prices [1][4][10]. Earnings Estimate Revisions - Analysts have increased their earnings estimates for Howmet, with the Zacks Consensus Estimate rising by 9.7% over the past three months [6]. - For the fiscal year ending December 2024, Howmet is expected to earn $2.39 per share, reflecting a 29.9% increase from the previous year's reported figure [13]. Zacks Rating System - The Zacks rating system maintains a balanced approach, with an equal distribution of 'buy' and 'sell' ratings across over 4000 stocks, ensuring that only the top 5% receive a 'Strong Buy' rating [7]. - The upgrade to Zacks Rank 1 places Howmet in the top 5% of Zacks-covered stocks, suggesting potential for near-term stock price appreciation [8]. Impact of Earnings on Stock Prices - Empirical research indicates a strong correlation between earnings estimate revisions and short-term stock price movements, making it beneficial for investors to track these revisions [5][11]. - Institutional investors often rely on earnings estimates to assess a company's fair value, and changes in these estimates can lead to significant stock price movements due to large transactions [11].