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The Zacks Consensus Estimate for the company’s third-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in two of the preceding four quarters while matching in the other two quarters, the average beat being 3.2%.
Let’s see how things have shaped up for Howmet this earnings season.
Factors to Note
Despite higher volumes, Howmet’s Forged Wheels segment has been exhibiting weakness due to ongoing supply-chain issues. The Zacks Consensus Estimate for the segment’s revenues in the third quarter suggests a 2.3% decline from the year-ago reported number.
Though weakness in the defense aerospace market is worrisome for the Engineered Structures segment, solid momentum in the commercial aerospace market is likely to support its results in the to-be-reported quarter. For the third quarter, the consensus estimate for the segment’s revenues indicates a 9.7% increase from the year-ago reported figure.
The rising cost of sales due to raw material inflation is likely to partially dent Howmet’s bottom line in the to-be-reported quarter.
However, HWM’s Engine products segment has been reaping the benefits from strength in commercial aerospace and defense aerospace markets owing to higher build rates and increased spares. The consensus mark for the segment’s revenues shows a 17.1% rise from the third-quarter 2022 reported number.
Widebody recovery within the commercial aerospace market is likely to drive the results of the Fastening Systems segment in the third quarter. The Zacks Consensus Estimate for revenues in the segment hints at a 10.3% increase from the third-quarter 2022 reported number.
Strength across the commercial aerospace, commercial transportation, defense aerospace and industrial markets is likely to drive HWM’s results in the third quarter. The Zacks Consensus Estimate for the company’s third-quarter 2023 revenues suggests an 11.6% increase from the year-ago reported number. For the quarter, the consensus estimate for adjusted earnings indicates a 19.4% jump from the year-ago reported number.
Our proven model does not conclusively predict an earnings beat for HWM 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, which is not the case here, as elaborated below.
Earnings ESP: Howmet has an Earnings ESP of +2.31% as the Most Accurate Estimate is pegged at 44 cents, which is higher than the Zacks Consensus Estimate of 43 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet presently carries a Zacks Rank #4 (Sell).
Highlights of Q2 Earnings
Howmet's second-quarter 2023 adjusted earnings of 44 cents per share beat the Zacks Consensus Estimate of adjusted earnings of 43 cents per share. The bottom line improved 25.7% year over year. Total revenues of $1,648 million surpassed the consensus estimate of $1,609 million. The top line increased 18.3% from the year-ago quarter.
Stocks to Consider
Here are some companies within the broader Construction sector, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.
The company is scheduled to release third-quarter results on Nov 2. KBR’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.8%.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank of 3. The company is scheduled to release third-quarter 2023 results on Nov 1.
LPX’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one, the average beat being 95.8%.
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Will Supply-Chain Issues Dent Howmet's (HWM) Q3 Earnings?
Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release third-quarter 2023 earnings on Nov 2, before market open.
The Zacks Consensus Estimate for the company’s third-quarter earnings has remained steady in the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in two of the preceding four quarters while matching in the other two quarters, the average beat being 3.2%.
Let’s see how things have shaped up for Howmet this earnings season.
Factors to Note
Despite higher volumes, Howmet’s Forged Wheels segment has been exhibiting weakness due to ongoing supply-chain issues. The Zacks Consensus Estimate for the segment’s revenues in the third quarter suggests a 2.3% decline from the year-ago reported number.
Though weakness in the defense aerospace market is worrisome for the Engineered Structures segment, solid momentum in the commercial aerospace market is likely to support its results in the to-be-reported quarter. For the third quarter, the consensus estimate for the segment’s revenues indicates a 9.7% increase from the year-ago reported figure.
The rising cost of sales due to raw material inflation is likely to partially dent Howmet’s bottom line in the to-be-reported quarter.
However, HWM’s Engine products segment has been reaping the benefits from strength in commercial aerospace and defense aerospace markets owing to higher build rates and increased spares. The consensus mark for the segment’s revenues shows a 17.1% rise from the third-quarter 2022 reported number.
Widebody recovery within the commercial aerospace market is likely to drive the results of the Fastening Systems segment in the third quarter. The Zacks Consensus Estimate for revenues in the segment hints at a 10.3% increase from the third-quarter 2022 reported number.
Strength across the commercial aerospace, commercial transportation, defense aerospace and industrial markets is likely to drive HWM’s results in the third quarter. The Zacks Consensus Estimate for the company’s third-quarter 2023 revenues suggests an 11.6% increase from the year-ago reported number. For the quarter, the consensus estimate for adjusted earnings indicates a 19.4% jump from the year-ago reported number.
Howmet Aerospace Inc. Price and EPS Surprise
Howmet Aerospace Inc. price-eps-surprise | Howmet Aerospace Inc. Quote
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for HWM 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, which is not the case here, as elaborated below.
Earnings ESP: Howmet has an Earnings ESP of +2.31% as the Most Accurate Estimate is pegged at 44 cents, which is higher than the Zacks Consensus Estimate of 43 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Howmet presently carries a Zacks Rank #4 (Sell).
Highlights of Q2 Earnings
Howmet's second-quarter 2023 adjusted earnings of 44 cents per share beat the Zacks Consensus Estimate of adjusted earnings of 43 cents per share. The bottom line improved 25.7% year over year. Total revenues of $1,648 million surpassed the consensus estimate of $1,609 million. The top line increased 18.3% from the year-ago quarter.
Stocks to Consider
Here are some companies within the broader Construction sector, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +6.36% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to release third-quarter results on Nov 2. KBR’s earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 10.8%.
Louisiana-Pacific Corporation (LPX - Free Report) has an Earnings ESP of +2.07% and a Zacks Rank of 3. The company is scheduled to release third-quarter 2023 results on Nov 1.
LPX’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters while missing in one, the average beat being 95.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.