Howmet (HWM) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The upward trend in estimate revisions for this maker of engineered products for the aerospace and other industries reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlat ...

Howmet (HWM) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ofte ...

Investors looking for stocks in the Engineering - R and D Services sector might want to consider either M-tron Industries, Inc. (MPTI) or 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.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strat ...

Howmet Aerospace Inc. (NYSE: HWM) recently revealed stellar performance numbers for the first quarter of 2024. The company’s earnings report for Q1 2024, released on May 2, 2024, exceeded market expectations across key metrics, propelling its stock to new all-time highs.Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.With a robust revenue of $1.82 billion, representing a remarkable 14% increase year over year, the company reported earnings per share ( ...

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements and Supplementary Data](index=3&type=section&id=Item%201.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents unaudited consolidated financial statements for Q1 2024, including operations, balance sheet, cash flows, and equity, with detailed notes on segments, debt, and contingencies [Statement of Consolidated Operations](index=3&type=section&id=Statement%20of%20Consolidated%20Operations) For Q1 2024, Howmet Aerospace reported sales of $1,824 million, a 13.8% increase, with operating income up 29.5% to $369 million and net income rising 64.2% to $243 million Consolidated Operations - Q1 2024 vs Q1 2023 | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $1,824 | $1,603 | +13.8% | | Operating Income | $369 | $285 | +29.5% | | Net Income | $243 | $148 | +64.2% | | Diluted EPS | $0.59 | $0.35 | +68.6% | [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2024, total assets were $10,410 million, total liabilities decreased to $6,324 million, and total equity increased to $4,086 million Balance Sheet Summary | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $3,340 | $3,316 | | Total Assets | $10,410 | $10,428 | | Total Current Liabilities | $1,698 | $1,784 | | Total Liabilities | $6,324 | $6,391 | | Total Equity | $4,086 | $4,037 | [Statement of Consolidated Cash Flows](index=6&type=section&id=Statement%20of%20Consolidated%20Cash%20Flows) In Q1 2024, cash from operations significantly improved to $177 million, while financing activities used $178 million, primarily for stock repurchases, and investing activities used $75 million Cash Flow Summary - Q1 2024 vs Q1 2023 | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Cash from Operations | $177 | $23 | | Cash for Financing | $(178) | $(214) | | Cash for Investing | $(75) | $(64) | | Net Change in Cash | $(76) | $(254) | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes detail financial statements, highlighting strong aerospace market performance, segment revenue and profitability, share repurchase activities, debt structure, and legal contingency updates - Approximately **51% of Q1 2024 revenue** came from the commercial aerospace market. The company notes that quality control issues at Boeing are expected to negatively impact narrow and wide body production rates in the near term[21](index=21&type=chunk) Segment Sales and Adjusted EBITDA - Q1 2024 | Segment | Third-Party Sales (in millions) | Segment Adjusted EBITDA (in millions) | | :--- | :--- | :--- | | Engine Products | $885 | $249 | | Fastening Systems | $389 | $92 | | Engineered Structures | $262 | $37 | | Forged Wheels | $288 | $82 | | **Total** | **$1,824** | **$460** | - In Q1 2024, the company repurchased approximately **2.2 million shares** of common stock for about **$150 million**. Approximately **$547 million** remains available under the current board authorization for share repurchases[48](index=48&type=chunk) - A legal dispute with Lockheed Martin regarding the F-35 Program was settled confidentially on April 2, 2024, with no material impact on current year results[85](index=85&type=chunk)[86](index=86&type=chunk) [Management's Discussion and Analysis (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, noting a 14% sales increase driven by aerospace and industrial demand, improved operating cash flow, strategic capital allocation, and recent investment-grade credit rating upgrades [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q1 2024 sales increased 14% to $1,824 million due to higher volumes and favorable pricing, with cost of goods sold improving to 70.7% of sales, leading to a $95 million net income increase - Sales increased by **$221 million (14%)** in Q1 2024 compared to Q1 2023, primarily due to higher volumes in commercial aerospace, defense aerospace, and industrial markets, along with favorable pricing[101](index=101&type=chunk) - Cost of goods sold (COGS) as a percentage of sales improved to **70.7%** in Q1 2024 from **72.6%** in Q1 2023, due to higher volumes and better pricing[102](index=102&type=chunk) - Net income increased by **$95 million**, driven by higher volumes, favorable pricing, and a reduction in interest expense from lower debt levels[112](index=112&type=chunk) [Segment Information](index=23&type=section&id=Segment%20Information) All aerospace segments showed strong growth in Q1 2024, with Engine Products, Fastening Systems, and Engineered Structures reporting significant sales and EBITDA increases, while Forged Wheels maintained flat sales but improved EBITDA Segment Performance Highlights - Q1 2024 vs Q1 2023 | Segment | Sales Change | Adj. EBITDA Change | Key Driver | | :--- | :--- | :--- | :--- | | Engine Products | +11% | +17% | Higher volumes in commercial aerospace, defense, and oil & gas | | Fastening Systems | +25% | +59% | Higher volumes in commercial aerospace, including wide body recovery | | Engineered Structures | +27% | +23% | Higher volumes in commercial and defense aerospace | | Forged Wheels | -0.3% | +4% | Higher volumes offset by lower aluminum price pass-through | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow significantly increased to $177 million in Q1 2024, supported by a new $1 billion commercial paper program and recent investment-grade credit rating upgrades - Cash from operations increased by **$154 million** year-over-year, primarily due to higher operating results (**$93 million**) and lower working capital usage (**$55 million**)[137](index=137&type=chunk) - On April 4, 2024, the company established a **$1 billion** commercial paper program for general corporate purposes, enhancing liquidity[141](index=141&type=chunk) - The company's debt has been upgraded to investment grade by all three major credit rating agencies, with Moody's upgrading to **Baa3** in February 2024[145](index=145&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material quantitative and qualitative disclosures regarding market risk for the period - The company reported no material disclosures regarding market risk[151](index=151&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO confirmed the effectiveness of disclosure controls and procedures, with no material changes to internal control over financial reporting in Q1 2024 - The CEO and CFO have evaluated and concluded that the company's disclosure controls and procedures are effective[152](index=152&type=chunk) - No material changes were made to the internal control over financial reporting during Q1 2024[152](index=152&type=chunk) [Part II – Other Information](index=28&type=section&id=Part%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note P of the Consolidated Financial Statements for detailed information regarding legal proceedings - For details on legal proceedings, the report refers to Note P in the financial statements[153](index=153&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2023 were reported - No material changes to risk factors were reported compared to the 2023 Form 10-K[154](index=154&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company repurchased 2,243,259 shares of common stock for approximately $150 million, with $547 million remaining available under the current authorization Common Stock Repurchases - Q1 2024 | Period | Total Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | January 2024 | — | $— | | February 2024 | 463,137 | $64.78 | | March 2024 | 1,780,122 | $67.41 | | **Total** | **2,243,259** | **$66.87** | - As of March 31, 2024, approximately **$547 million** remains available under the company's share repurchase program[155](index=155&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including Sarbanes-Oxley Act certifications and Inline XBRL documents - The report includes required certifications under Sections 302 and 906 of the Sarbanes-Oxley Act and provides financial data in Inline XBRL format[156](index=156&type=chunk)

Howmet Aerospace Inc.’s (HWM) first-quarter 2024 adjusted earnings of 57 cents per share beat the Zacks Consensus Estimate of 52 cents. The bottom line improved 35.7% year over year.Total revenues of $1.8 billion surpassed the consensus estimate of $1.7 billion. The top line increased 14% from the year-ago quarter. The increase was backed by an improved commercial aerospace market.Segmental DetailsThe Engine Products segment’s revenues totaled $885 million, representing 48.5% of net revenues. On a year-over ...

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $1.824 billion, up 14% year-over-year, with EBITDA increasing by 21% to $437 million, resulting in a record EBITDA margin of 24% [88][91] - Earnings per share reached $0.57, marking a 36% increase year-over-year and an 8% sequential increase [88][89] - Net debt to EBITDA improved to a record low of 2x, reflecting enhanced financial leverage and strong cash generation [72][93] Business Line Data and Key Metrics Changes - Engine Products revenue increased by 11% to $885 million, with commercial aerospace up 14% and defense aerospace up 13% [79] - Engineered Structures revenue rose 27% year-over-year to $262 million, driven by a recovery in commercial aerospace and defense aerospace [73] - Fastening Systems revenue increased by 25% year-over-year to $389 million, with commercial aerospace up 44% [124] Market Data and Key Metrics Changes - Commercial aerospace market grew by 23%, continuing a trend of 12 consecutive quarters of growth, representing approximately 50% of total revenue [78] - Asia-Pacific travel is recovering rapidly, now at approximately 90% of pre-pandemic levels, which is expected to drive future aircraft demand [101] - The defense aerospace market was strong, up 12%, driven by fighter programs and engine spares demand [119] Company Strategy and Development Direction - The company plans to increase its dividend by 40% in the second half of the year, pending Board approval [104] - Capital allocation will focus on share buybacks while maintaining the ability to pay down the 2024 bond [105] - The main thrust continues to be the expansion in the engines business to achieve market share increases [105] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding Boeing's production rates, particularly for the 737 MAX, which are expected to be lower than previously envisioned [74][129] - The company anticipates a revenue adjustment due to Boeing's production challenges but expects overall revenue to increase by approximately $200 million for 2024 [130] - Management remains optimistic about the long-term recovery in aerospace and defense markets, despite current volatility [55][130] Other Important Information - The company achieved a significant reduction in greenhouse gas emissions, tracking well towards its 2024 goals [100] - Total liquidity stands at approximately $2.5 billion, bolstered by a $1 billion commercial paper program [94][93] Q&A Session Summary Question: Can you clarify the production rates and expectations for Boeing? - Management noted that Boeing's production rates have been adjusted downwards, with a more secure assumption of approximately 20 aircraft per month for the year [74][129] Question: What is the outlook for the commercial aerospace market? - The company expects continued strong demand for air travel, with constraints during the summer season due to the availability of new aircraft [128] Question: How is the company managing its supply chain in light of Boeing's production issues? - Management indicated that they are making cautious assumptions regarding supply chain requirements and are prepared for potential adjustments [155][156]

This under-the-radar aerospace manufacturer is finally getting its due.Howmet Aerospace (HWM 15.96%) easily topped quarterly expectations, raised full-year guidance, and telegraphed a big boost to its dividend later this year. Investors are buying in, sending shares up 16% as of 11:15 a.m. ET.Strong results despite Boeing's issuesHowmet is a collection of jet engine and aerospace component businesses that were cobbled together by Alcoa before being spun out as an independent. The company earned $0.57 per sh ...

Q1 2024 Performance Highlights - Revenue reached $1.82 billion, a 14% increase year-over-year, driven by a 23% increase in Commercial Aerospace revenue[4, 17] - Adjusted EBITDA was $437 million, up 21% year-over-year, with an Adjusted EBITDA Margin of 24%, an increase of approximately 150 basis points[4, 78] - Adjusted Earnings Per Share was $0.57, a 36% increase year-over-year[4, 78] - The company generated a record Q1 Free Cash Flow of $95 million[12, 17] Segment Performance - Engine Products revenue increased by 11% year-over-year, with an Adjusted EBITDA Margin of 28.1%[79] - Fastening Systems revenue increased by 25% year-over-year, with an Adjusted EBITDA Margin of 23.7%[72] - Engineered Structures revenue increased by 27% year-over-year, with an Adjusted EBITDA Margin of 14.1%[67] - Forged Wheels revenue was approximately flat year-over-year, with an Adjusted EBITDA Margin of 28.5%[64, 75] FY 2024 Guidance - The company expects revenue to increase by approximately 10% year-over-year[16, 19] - Adjusted EBITDA is expected to increase by approximately 16% year-over-year[16, 19] - Adjusted Earnings Per Share is expected to increase by approximately 28% year-over-year[16, 19] - Free Cash Flow is projected to be approximately $800 million, up approximately 17% year-over-year, with a Free Cash Flow Conversion of approximately 85%[16, 103] Capital Deployment and Balance Sheet - Approximately $170 million was allocated for common stock repurchases and quarterly dividends[4, 86] - $150 million was used to repurchase common stock[12] - Net Debt-to-LTM EBITDA improved to a record low of 20x[12, 84]

Howmet (HWM) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.62%. A quarter ago, it was expected that this maker of engineered products for the aerospace and other industries would post earnings of $0.46 per share when it actually produced earnings of $0.53, delivering a surprise of ...