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Howmet (HWM) to Post Q1 Earnings: What's in the Offing?
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Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release first-quarter 2022 results on May 3, before market open.
The company reported better-than-expected results in three of the last four quarters and met estimates once. The earnings surprise was 5.36%, on average. In the last reported quarter, the company’s earnings of 30 cents per share surpassed the Zacks Consensus Estimate of 29 cents by 3.45%.
Image Source: Zacks Investment Research
In the past three months, shares of Howmet have gained 12.5% compared with the industry’s growth of 6%.
Key Factors & Estimates for Q1
Howmet is expected to have benefited from strength across its commercial transportation, commercial aerospace and industrial gas turbine markets in the first quarter. Also, the company’s quarterly results are likely to reflect the benefits of solid product offerings, investments in innovation and a solid liquidity position. For the first quarter, it anticipates its revenues to be in the range of $1.28-$1.32 billion.
The company’s first-quarter results are expected to reflect the impacts of effective pricing actions and cost-reduction initiatives. The policy of rewarding shareholders with dividend and share buybacks and debt-reduction actions might have raised its attractiveness in the quarter.
However, the persistence of any issue with the production of Boeing 787, along with weakness in the aerospace-defense market and lower spares/aftermarket demand, is expected to have adversely impacted the quarter’s performance.
HWM has been experiencing the adverse impacts of cost inflation and supply-chain restrictions over the past few quarters. Labor problems and higher cost-related headwinds are expected to have adversely impacted margins and profitability in the first quarter.
The Zacks Consensus Estimate for Howmet’s revenues is pegged at $1,300 million for the first quarter of 2022, suggesting a 7.5% increase from the year-ago quarter’s reported number and 1.2% growth from the previous quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at 29 cents, indicating an increase of 31.8% from the year-ago reported figure and a 3.3% decline sequentially.
On a segmental basis, the Zacks Consensus Estimate for the Engine Products segment’s revenues is pegged at $607 million, in line with the previous quarter’s reported figure. The consensus estimate for Fastening Systems’ revenues is pegged at $268 million, suggesting growth of 4.7% from the previous quarter’s reported number.
The Zacks Consensus Estimate for Engineered Structures’ first-quarter revenues is pegged at $179 million, suggesting a sequential decrease of 6.8%. The consensus estimate for Forged Wheels’ revenues at $243 million suggests a 3.8% rise from the previous quarter’s reported figure.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of Chart Industries have decreased 2.3% for 2022 in the past 60 days. Its shares have gained 27.5% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of Eaton have decreased 0.8% for 2022 in the past 60 days. Its shares have declined 6.7% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 8.7% in the past three months.
Image: Bigstock
Howmet (HWM) to Post Q1 Earnings: What's in the Offing?
Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release first-quarter 2022 results on May 3, before market open.
The company reported better-than-expected results in three of the last four quarters and met estimates once. The earnings surprise was 5.36%, on average. In the last reported quarter, the company’s earnings of 30 cents per share surpassed the Zacks Consensus Estimate of 29 cents by 3.45%.
Image Source: Zacks Investment Research
In the past three months, shares of Howmet have gained 12.5% compared with the industry’s growth of 6%.
Key Factors & Estimates for Q1
Howmet is expected to have benefited from strength across its commercial transportation, commercial aerospace and industrial gas turbine markets in the first quarter. Also, the company’s quarterly results are likely to reflect the benefits of solid product offerings, investments in innovation and a solid liquidity position. For the first quarter, it anticipates its revenues to be in the range of $1.28-$1.32 billion.
The company’s first-quarter results are expected to reflect the impacts of effective pricing actions and cost-reduction initiatives. The policy of rewarding shareholders with dividend and share buybacks and debt-reduction actions might have raised its attractiveness in the quarter.
However, the persistence of any issue with the production of Boeing 787, along with weakness in the aerospace-defense market and lower spares/aftermarket demand, is expected to have adversely impacted the quarter’s performance.
HWM has been experiencing the adverse impacts of cost inflation and supply-chain restrictions over the past few quarters. Labor problems and higher cost-related headwinds are expected to have adversely impacted margins and profitability in the first quarter.
The Zacks Consensus Estimate for Howmet’s revenues is pegged at $1,300 million for the first quarter of 2022, suggesting a 7.5% increase from the year-ago quarter’s reported number and 1.2% growth from the previous quarter’s reported figure. The Zacks Consensus Estimate for earnings is pegged at 29 cents, indicating an increase of 31.8% from the year-ago reported figure and a 3.3% decline sequentially.
On a segmental basis, the Zacks Consensus Estimate for the Engine Products segment’s revenues is pegged at $607 million, in line with the previous quarter’s reported figure. The consensus estimate for Fastening Systems’ revenues is pegged at $268 million, suggesting growth of 4.7% from the previous quarter’s reported number.
The Zacks Consensus Estimate for Engineered Structures’ first-quarter revenues is pegged at $179 million, suggesting a sequential decrease of 6.8%. The consensus estimate for Forged Wheels’ revenues at $243 million suggests a 3.8% rise from the previous quarter’s reported figure.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Howmet has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at 29 cents.
Howmet Aerospace Inc. Price and EPS Surprise
Howmet Aerospace Inc. price-eps-surprise | Howmet Aerospace Inc. Quote
Zacks Rank: The company carries a Zacks Rank #2.
Key Picks
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank of 3 at present. GTLS delivered a trailing four-quarter earnings surprise of 2.9%, on average.
Earnings estimates of Chart Industries have decreased 2.3% for 2022 in the past 60 days. Its shares have gained 27.5% in the past three months.
Eaton Corporation plc (ETN - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3, currently. ETN delivered a trailing four-quarter earnings surprise of 7%, on average.
Earnings estimates of Eaton have decreased 0.8% for 2022 in the past 60 days. Its shares have declined 6.7% in the past three months.
AGCO Corporation (AGCO - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank of 3, currently. Its earnings surprise in the last four quarters was 56.7%, on average.
In the past 60 days, AGCO’s earnings estimates have decreased 0.7% for 2022. The stock has rallied 8.7% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.