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Howmet Aerospace (HWM) to Post Q3 Earnings: What to Expect?
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Howmet Aerospace Inc. (HWM - Free Report) is slated to report third-quarter 2021 results on Nov 4, before market open.
The company delivered impressive results in two of the last four quarters, while lagging estimates once and meeting the same once, the earnings surprise being 2.13%, on average.
In the last reported quarter, the company’s reported earnings of 22 cents per share met the Zacks Consensus Estimate.
In the past three months, shares of Howmet Aerospace have declined 7.1% against the industry’s growth of 9.4%.
Image Source: Zacks Investment Research
Let us delve deeper.
Key Factors & Estimates for Q3
Exposure in diversified end markets has been benefiting Howmet Aerospace over time. In second-quarter 2021, the company’s revenues gained from growth in commercial transportation and industrial end markets. Continued strength in commercial transportation and recovery in commercial aerospace is anticipated to have aided its performance in the third quarter. The industrial gas turbine market is also expected to have been beneficial.
In addition to the above-mentioned factors, the company’s solid product offerings, a focus on innovation, cost-saving actions and effective pricing are anticipated to have aided.
On the flip side, the shortages of parts (mainly semiconductors) are believed to have been worrying for the commercial transportation market. Costs related to any increase in headcount are expected to have been worrisome. Notably, the company targets an increase in headcount of 500 for the second half of 2021.
For third-quarter 2021, the company expects $100 million more revenues from the second quarter’s reported figure of $1,195 million. Earnings for the quarter are expected to be 23-27 cents per share. Adjusted earnings before interest, tax, depreciation, and amortization are predicted to be $285-$305 million.
The Zacks Consensus Estimate for revenues is pegged at $1,294 million for the third quarter of 2021, suggesting a 14.1% increase from the year-ago quarter’s reported number and an 8.2% increase from the prior quarter’s reported figure. Earnings estimates are pegged at 25 cents per share, marking an increase of 13.6% from the previous quarter’s reported figure. Notably, it reported earnings of 3 cents in the year-ago quarter.
On a segmental basis, the consensus estimate for Engine Products revenues of $620 million suggests growth of 13.8% from the previous quarter’s reported number. Fastening Systems’ revenue estimates are pegged at $264 million, indicating a decline of 2.9% from the previous quarter’s reported figure. The consensus estimate for Engineered Structures at $189 million suggests a year-over-year decrease of 16.7%. Forged Wheels’ revenue estimates are unchanged at $229 million.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Howmet Aerospace this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The case with Howmet Aerospace is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Howmet Aerospace has an Earnings ESP of 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate pegged at 25 cents.
Howmet Aerospace Inc. Price, Consensus and EPS Surprise
Zacks Rank: The company currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.
Image: Bigstock
Howmet Aerospace (HWM) to Post Q3 Earnings: What to Expect?
Howmet Aerospace Inc. (HWM - Free Report) is slated to report third-quarter 2021 results on Nov 4, before market open.
The company delivered impressive results in two of the last four quarters, while lagging estimates once and meeting the same once, the earnings surprise being 2.13%, on average.
In the last reported quarter, the company’s reported earnings of 22 cents per share met the Zacks Consensus Estimate.
In the past three months, shares of Howmet Aerospace have declined 7.1% against the industry’s growth of 9.4%.
Let us delve deeper.
Key Factors & Estimates for Q3
Exposure in diversified end markets has been benefiting Howmet Aerospace over time. In second-quarter 2021, the company’s revenues gained from growth in commercial transportation and industrial end markets. Continued strength in commercial transportation and recovery in commercial aerospace is anticipated to have aided its performance in the third quarter. The industrial gas turbine market is also expected to have been beneficial.
In addition to the above-mentioned factors, the company’s solid product offerings, a focus on innovation, cost-saving actions and effective pricing are anticipated to have aided.
On the flip side, the shortages of parts (mainly semiconductors) are believed to have been worrying for the commercial transportation market. Costs related to any increase in headcount are expected to have been worrisome. Notably, the company targets an increase in headcount of 500 for the second half of 2021.
For third-quarter 2021, the company expects $100 million more revenues from the second quarter’s reported figure of $1,195 million. Earnings for the quarter are expected to be 23-27 cents per share. Adjusted earnings before interest, tax, depreciation, and amortization are predicted to be $285-$305 million.
The Zacks Consensus Estimate for revenues is pegged at $1,294 million for the third quarter of 2021, suggesting a 14.1% increase from the year-ago quarter’s reported number and an 8.2% increase from the prior quarter’s reported figure. Earnings estimates are pegged at 25 cents per share, marking an increase of 13.6% from the previous quarter’s reported figure. Notably, it reported earnings of 3 cents in the year-ago quarter.
On a segmental basis, the consensus estimate for Engine Products revenues of $620 million suggests growth of 13.8% from the previous quarter’s reported number. Fastening Systems’ revenue estimates are pegged at $264 million, indicating a decline of 2.9% from the previous quarter’s reported figure. The consensus estimate for Engineered Structures at $189 million suggests a year-over-year decrease of 16.7%. Forged Wheels’ revenue estimates are unchanged at $229 million.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Howmet Aerospace this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. The case with Howmet Aerospace is shown below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Howmet Aerospace has an Earnings ESP of 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate pegged at 25 cents.
Howmet Aerospace Inc. Price, Consensus and EPS Surprise
Howmet Aerospace Inc. price-consensus-eps-surprise-chart | Howmet Aerospace Inc. Quote
Zacks Rank: The company currently has a Zacks Rank #3.
Stocks to Consider
Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.
Jacobs Engineering Group Inc. (J - Free Report) presently has an Earnings ESP of +6.49% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Installed Building Products, Inc. (IBP - Free Report) currently has an Earnings ESP of +0.60% and is a Zacks #2 Ranked player.
Fluor Corporation (FLR - Free Report) currently has an Earnings ESP of +12.50% and a Zacks Rank #3.