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The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by 5.3% in the past 90 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.1%.
Let’s see how things have shaped up for Howmet this earnings season.
Howmet’s third-quarter performance is expected to have been driven by continued recovery in the commercial aerospace end market, owing to improvement in narrow body production rates. The Zacks Consensus Estimate for Engine Products revenues indicates a 15.3% jump from the year-ago reported number. The same for Fastening Systems suggests a 10.6% increase from the year-ago reported figure.
Cost-control measures, efficiency gains and pricing actions are likely to have supported Howmet’s margin performance in the third quarter.
Higher aluminum prices and volumes are likely to have boosted performance of the Forged Wheels segment. The Zacks Consensus Estimate for Forged Wheels revenues hints at a 16% rise from the third quarter of 2021 reported number.
On the flipside, the Engineered Structures segment’s performance might have been hurt by continued decline in Boeing 787 production. The Zacks Consensus Estimate for third-quarter Engineered Structures segment revenues shows a 0.5% dip from the year-ago reported number.
Softness in volumes and reduced commercial truck production due to supply-chain disruptions are likely to have impacted HWM’s third-quarter performance. High raw material costs are likely to have dented the company’s bottom line. The top line is expected to reflect softness from adverse foreign currency movements.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Howmet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Howmet has an Earnings ESP of -0.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet currently carries a Zacks Rank #4 (Sell).
Highlights of Q2 Earnings
Howmet’s second-quarter 2022 adjusted earnings of 35 cents per share surpassed the Zacks Consensus Estimate of 33 cents. The bottom line surged 59.1% year over year. Net sales of $1,393 million outperformed the Zacks Consensus Estimate of $1,300 million. The top line climbed 17% year over year owing to improved commercial aerospace market and pricing actions.
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 beat on earnings this reporting cycle.
Sonoco Products (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3. The company is scheduled to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.1%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Image: Bigstock
What's in the Cards for Howmet (HWM) This Earnings Season?
Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release third-quarter 2022 results on Oct 31, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has been revised downward by 5.3% in the past 90 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.1%.
Let’s see how things have shaped up for Howmet this earnings season.
Howmet Aerospace Inc. Price and EPS Surprise
Howmet Aerospace Inc. price-eps-surprise | Howmet Aerospace Inc. Quote
Factors to Note
Howmet’s third-quarter performance is expected to have been driven by continued recovery in the commercial aerospace end market, owing to improvement in narrow body production rates. The Zacks Consensus Estimate for Engine Products revenues indicates a 15.3% jump from the year-ago reported number. The same for Fastening Systems suggests a 10.6% increase from the year-ago reported figure.
Cost-control measures, efficiency gains and pricing actions are likely to have supported Howmet’s margin performance in the third quarter.
Higher aluminum prices and volumes are likely to have boosted performance of the Forged Wheels segment. The Zacks Consensus Estimate for Forged Wheels revenues hints at a 16% rise from the third quarter of 2021 reported number.
On the flipside, the Engineered Structures segment’s performance might have been hurt by continued decline in Boeing 787 production. The Zacks Consensus Estimate for third-quarter Engineered Structures segment revenues shows a 0.5% dip from the year-ago reported number.
Softness in volumes and reduced commercial truck production due to supply-chain disruptions are likely to have impacted HWM’s third-quarter performance. High raw material costs are likely to have dented the company’s bottom line. The top line is expected to reflect softness from adverse foreign currency movements.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Howmet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Howmet has an Earnings ESP of -0.93%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet currently carries a Zacks Rank #4 (Sell).
Highlights of Q2 Earnings
Howmet’s second-quarter 2022 adjusted earnings of 35 cents per share surpassed the Zacks Consensus Estimate of 33 cents. The bottom line surged 59.1% year over year. Net sales of $1,393 million outperformed the Zacks Consensus Estimate of $1,300 million. The top line climbed 17% year over year owing to improved commercial aerospace market and pricing actions.
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 beat on earnings this reporting cycle.
Sonoco Products (SON - Free Report) has an Earnings ESP of +4.20% and a Zacks Rank #3. The company is scheduled to release third-quarter 2022 results on Oct 31.
Sonoco’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.1%.
Emerson Electric Co. (EMR - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3. The company is scheduled to release fourth-quarter fiscal 2022 (ended Sep 30, 2022) results on Nov 2.
Emerson’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.