Yahoo Finance Howmet (HWM) to Report Q1 Earnings: What's in the Cards?
Howmet Aerospace Inc. HWM is scheduled to release first-quarter 2023 earnings numbers on May 2, before market open.
The Zacks Consensus Estimate for the company’s first-quarter earnings has remained steady in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.
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
Continued recovery in the commercial aerospace end market, owing to improvement in narrow-body production, is expected to have driven Howmet’s performance in the to-be-reported quarter. Pricing actions are likely to have boosted the top line. The Zacks Consensus Estimate for first-quarter revenues indicates an approximate 13% jump from the year-ago reported figure.
Strength in the commercial aerospace, defense aerospace and oil and gas end markets and pricing actions are expected to have boosted Engine Products revenues. The Zacks Consensus Estimate for Engine Products revenues in the first quarter suggests a 15.8% increase from the year-ago reported number.
Strength in commercial aerospace and narrow body recovery is expected to have supported the Fastening Systems and Engineered Structures segments’ performances. The consensus mark for Fastening Systems’ revenues shows a 7.2% rise from the first-quarter 2022 reported number. The same for Engineered Structures reflects an approximate 20% increase from the year-ago reported number.
Solid momentum in commercial transportation due to higher aluminum prices and volumes is expected to have buoyed the Forged Wheels unit. The Zacks Consensus Estimate for revenues in the Forged Wheels segment hints at a 5.3% increase from the first-quarter 2022 reported number.
However, softness in volumes and reduced commercial truck production due to supply chain disruptions are likely to have hurt HWM’s performance. Cost inflation might have dented the company’s bottom line. Foreign currency headwinds might have impacted the top-line performance.
Earnings Whispers
Our proven model predicts 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 odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: Howmet has an Earnings ESP of +1.98% as the Most Accurate Estimate is pegged at $1.69, higher than the Zacks Consensus Estimate of $1.65. 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 #2.
Highlights of Q4 Earnings
Howmet reported fourth-quarter 2022 adjusted earnings of 38 cents per share, in line with the Zacks Consensus Estimate. The bottom line improved 26.7% year over year. Total revenues of $1,513 million surpassed the Zacks Consensus Estimate of $1,471.7 million. The top line increased 17.7%, backed by an improvement in the commercial aerospace market and pricing actions.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
A. O. Smith AOS has an Earnings ESP of +10.19% and a Zacks Rank #3. The company is scheduled to release first-quarter 2023 results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for A. O. Smith’s first-quarter earnings has been revised upward by a penny in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.
Illinois Tool Works ITW has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is set to release first-quarter 2023 results on May 2.
While the Zacks Consensus Estimate for Illinois Tool’s first-quarter earnings has been revised downward by approximately 1% in the past 60 days, the same has increased by 2.3% in the past 90 days. The company pulled off a trailing four-quarter earnings surprise of 0.9%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
