Core Viewpoint - Howmet Aerospace Inc. is expected to report strong second-quarter results, with earnings projected at $0.87 per share and revenues at $1.99 billion, reflecting year-over-year increases of 29.9% and 5.8% respectively [2][7]. Financial Performance - The Zacks Consensus Estimate for second-quarter earnings has increased by a penny over the past 60 days, indicating positive momentum [2]. - The earnings surprise history shows that Howmet has outperformed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 8.8% [3]. Market Dynamics - The commercial aerospace market is experiencing solid momentum, driven by increased air travel and demand for wide-body aircraft, which supports OEM spending [5]. - The revenue estimate from the commercial aerospace market for the second quarter is $1.05 billion, representing a 6.9% increase from the previous year [6]. - The defense business remains strong, with robust orders for engine spares for the F-35 program, leading to a projected revenue of $343 million, an 18.3% increase year-over-year [8]. Challenges - The Forged Wheels segment is facing lower demand due to reduced OEM builds, with a revenue estimate of $305 million, indicating an 11.8% decrease year-over-year [9]. - Supply-chain disruptions in the aerospace sector have resulted in delays and increased costs, which may impact operations and performance [10]. Stock Performance - Howmet's stock has surged 37.4% over the past three months, outperforming the Zacks Aerospace-Defense industry growth of 20.2% and the S&P 500's increase of 15% [11]. - The company's forward 12-month P/E ratio stands at 48.79X, significantly higher than the industry average of 28.11X, which may pose risks if market sentiment declines [14]. Investment Outlook - Howmet's diversified portfolio and strength in aerospace markets position it well for long-term growth, supported by enhanced U.S. government budgetary provisions [17]. - However, near-term challenges such as weakness in the commercial transportation market and supply-chain issues warrant caution for investors [18].

The market expects Howmet (HWM) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July ...

Group 1: Company Performance - Howmet Aerospace Inc. (HWM) is experiencing a decline in its commercial transportation market, with revenues falling 14% year-over-year in Q1 2025, primarily due to weaker OEM builds, especially in the Forged Wheels segment [1][7] - Production issues related to Boeing's 787 aircraft are causing quality control challenges, which are expected to negatively impact both narrow-body and wide-body aircraft production rates, potentially reducing demand for maintenance parts and products [2] - Despite challenges in the commercial transportation market, strong demand in the commercial and defense aerospace markets, particularly for F-35 engine spares and aerospace fastening systems, is supporting HWM's overall performance [3][7] Group 2: Industry Context - Textron Inc.'s Aviation segment is showing growth, with a 2% increase in revenues year-over-year to $1.21 billion in Q1 2025, supported by improving commercial air passenger traffic [4] - GE Aerospace is benefiting from solid demand for its engines and services, with a significant deal with Qatar Airways for over 400 GE9X and GEnx engines, marking the largest widebody engine deal in the company's history [5] Group 3: Valuation and Estimates - HWM's shares have surged 130.4% over the past year, significantly outperforming the industry's growth of 17.2% [6] - The company is currently trading at a forward price-to-earnings ratio of 47.53X, which is above the industry average of 27.95X, and carries a Value Score of D [9] - The Zacks Consensus Estimate for HWM's earnings has been increasing over the past 60 days, with current estimates for Q2 2025 at $0.87 and for the current year at $3.47 [11][12]

Company Performance - Howmet (HWM) closed at $188.83, reflecting a +2.46% change from the previous day, outperforming the S&P 500's daily gain of 0.54% [1] - Over the past month, HWM shares increased by 8.27%, surpassing the Aerospace sector's gain of 6.63% and the S&P 500's gain of 4.2% [1] Earnings Forecast - Howmet is expected to release earnings on July 31, 2025, with a predicted EPS of $0.87, indicating a growth of 29.85% compared to the same quarter last year [2] - The consensus estimate for revenue is $1.99 billion, representing a 5.78% increase year-over-year [2] Annual Estimates - For the entire year, Zacks Consensus Estimates forecast earnings of $3.47 per share and revenue of $8.08 billion, reflecting changes of +29% and +8.74% respectively compared to the previous year [3] Analyst Sentiment - Recent changes to analyst estimates for Howmet indicate a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Howmet at 2 (Buy) [6] Valuation Metrics - Howmet's Forward P/E ratio stands at 53.08, significantly higher than the industry average of 25.16 [7] - The PEG ratio for HWM is 2.73, compared to the industry average PEG ratio of 2.05 [7] Industry Context - The Aerospace - Defense industry, part of the Aerospace sector, holds a Zacks Industry Rank of 87, placing it in the top 36% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Howmet Aerospace Inc.'s defense aerospace market is a significant driver of overall growth, with a 19% year-over-year revenue increase in Q1 2025, accounting for 17% of total sales [1][8] - The Engineered Structures segment reported an 8% year-over-year revenue increase, bolstered by a 36% rise in defense aerospace sales [2][8] - The U.S. Senate Committee on Appropriations approved a fiscal 2025 Defense Appropriations Act with a total funding of $852.2 billion, a 3.3% increase from fiscal 2024, which is favorable for Howmet's defense aerospace market [3][4][8] Industry Context - Increased military funding enhances Howmet's ability to secure new contracts, particularly with strong momentum in the F-35 program [4] - Competitors like Textron Inc. and GE Aerospace are also experiencing growth in their defense segments, with Textron securing a U.S. Navy contract worth up to $100 million and GE Aerospace benefiting from rising demand for advanced propulsion systems [5][6] Financial Performance - Howmet's shares have surged 127.7% over the past year, significantly outperforming the industry's growth of 20.1% [7] - The company is currently trading at a forward price-to-earnings ratio of 46.77X, above the industry average of 27.53X, indicating a premium valuation [10] - The Zacks Consensus Estimate for Howmet's earnings has been on the rise, with current estimates for Q2 2025 at $0.87 and for the current year at $3.47 [12][13]

Market Overview - Wall Street reached record-high levels despite a turbulent first half of 2025, with the second quarter being the best for U.S. stocks in the past year, driven by expectations of key trade deals and reduced recession fears [1] - The Federal Reserve indicated two more cuts in the benchmark lending rate for the second half of the year, contributing to the ongoing bull run in U.S. stock markets, with the S&P 500 and Nasdaq Composite hitting all-time highs [2] Company Highlights HEICO Corp. (HEI) - HEICO is experiencing increased orders for aftermarket replacement parts and repair services, supported by rising air travel and solid U.S. defense funding, which is expected to enhance order flows for its defense products [6][7] - The company has an expected revenue growth rate of 13.3% and earnings growth rate of 24.5% for the current year, with a 0.7% improvement in the Zacks Consensus Estimate for current-year earnings over the last week [8] Howmet Aerospace Inc. (HWM) - Howmet Aerospace is benefiting from strong momentum in the commercial aerospace market and robust defense aerospace activity, particularly from the F-35 program [11][12] - The expected revenue growth rate for HWM is 8.6% and earnings growth rate is 29% for the current year, with a 0.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [12] Interactive Brokers Group Inc. (IBKR) - Interactive Brokers is a global automated electronic broker focusing on proprietary software development and expanding its global footprint, with projected total net revenues seeing a CAGR of 6.5% by 2027 [13] - The expected revenue growth rate for IBKR is 2.9% and earnings growth rate is 4.6% for the current year, with a 4% improvement in the Zacks Consensus Estimate for current-year earnings over the last week [15]

Company Overview - Howmet (HWM) is currently a strong performer in the Aerospace sector, with a year-to-date return of approximately 63.2%, significantly outperforming the sector average of 22.8% [4] - The company holds a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Earnings Performance - Over the past 90 days, the Zacks Consensus Estimate for HWM's full-year earnings has increased by 7.2%, reflecting improved analyst sentiment [4] - In comparison, Rolls-Royce Holdings PLC (RYCEY) has also shown strong performance with a year-to-date return of 89.5% and a consensus EPS estimate increase of 5.1% over the past three months [5] Industry Context - Howmet is part of the Aerospace - Defense industry, which includes 24 companies and currently ranks 45 in the Zacks Industry Rank, with an average gain of 23.3% this year [6] - In contrast, Rolls-Royce operates within the Aerospace - Defense Equipment industry, which has 33 stocks and ranks 91, with a year-to-date increase of 21.9% [7]

Core Viewpoint - Brokerage recommendations, particularly for Howmet (HWM), suggest a strong buy sentiment, but their reliability is questioned due to potential biases from brokerage firms [2][10]. Group 1: Brokerage Recommendations - Howmet has an average brokerage recommendation (ABR) of 1.43, indicating a consensus between Strong Buy and Buy, with 76.2% of recommendations being Strong Buy [2]. - The ABR is based on 21 recommendations, with 16 classified as Strong Buy and one as Buy [2]. - Despite the positive ABR, studies indicate that brokerage recommendations may not effectively guide investors towards stocks with the highest potential for price appreciation [5][10]. Group 2: Zacks Rank vs. ABR - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is distinct from ABR, as it is a quantitative model reflecting earnings estimates, while ABR is based solely on brokerage recommendations [9]. - The Zacks Rank is updated more frequently than ABR, making it a more timely indicator for predicting future stock prices [12]. Group 3: Earnings Estimates for Howmet - The Zacks Consensus Estimate for Howmet has increased by 0.4% over the past month to $3.47, reflecting analysts' growing optimism about the company's earnings prospects [13]. - This increase in consensus estimates, along with other factors, has led to a Zacks Rank of 1 (Strong Buy) for Howmet, suggesting a favorable investment outlook [14].

Core Insights - Howmet Aerospace Inc. (HWM) is experiencing significant growth, particularly in the commercial aerospace sector, which accounted for 52% of total revenues in Q1 2025, with a year-over-year revenue increase of 9% [1][9] Group 1: Commercial Aerospace Market - The demand for wide-body aircraft is rising due to increased air travel, leading original equipment manufacturers (OEMs) to boost their spending [2] - The growth in the commercial aerospace market is also driven by the demand for fuel-efficient aircraft and the recovery of Boeing 737 MAX production, which is expected to enhance demand for HWM's products [3][9] - HWM's peers, such as RTX Corporation and GE Aerospace, are also reporting strong growth in the commercial aerospace market, with RTX achieving 8% organic sales growth and GE benefiting from solid demand for its engines [5][6] Group 2: Defense Aerospace Market - The defense aerospace market is showing positive momentum, driven by increased demand for engine spares, particularly for the F-35 program, and rising military budgets [4] Group 3: Financial Performance - HWM's stock has surged 127.8% over the past year, significantly outperforming the industry average growth of 17.2% [8] - The company is currently trading at a forward price-to-earnings ratio of 47.53X, which is above the industry average of 26.71X [11] - The Zacks Consensus Estimate for HWM's earnings has been increasing over the past 60 days, indicating positive market sentiment [12]

PITTSBURGH, July 10, 2025 /PRNewswire/ -- Howmet Aerospace Inc. (NYSE: HWM) will announce its second quarter 2025 financial results on Thursday, July 31, 2025. The press release and presentation materials will be available at approximately 7:00 AM ET on July 31, 2025, via the "Investors" section of the Howmet Aerospace website.The conference call and webcast will begin at 11:00 AM ET.Conference Call Information: Day:                Thursday, July 31, 2025 Time:              11:00 AM ET H ...