Stock Story -
Aerospace and defense company Howmet (NYSE:HWM) will be announcing earnings results tomorrow morning. Here's what investors should know.
Howmet beat analysts' revenue expectations by 5.1% last quarter, reporting revenues of $1.82 billion, up 13.8% year on year. It was an impressive quarter for the company, with a solid beat of analysts' Fastening systems revenue estimates and a decent beat of analysts' earnings estimates.
Is Howmet a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Howmet's revenue to grow 11.3% year on year to $1.83 billion, slowing from the 18.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Howmet has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.4% on average.
Looking at Howmet's peers in the aerospace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Textron (NYSE:TXT) delivered year-on-year revenue growth of 3%, meeting analysts' expectations, and Hexcel reported revenues up 10.1%, topping estimates by 3%. Textron traded down 1.8% following the results while Hexcel was also down 7.5%.
Read the full analysis of Textron's and Hexcel's results on StockStory.
There has been positive sentiment among investors in the aerospace segment, with share prices up 10.9% on average over the last month. Howmet is up 7.4% during the same time and is heading into earnings with an average analyst price target of $88.1 (compared to the current share price of $83).
