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Earnings call: Howmet Aerospace reports third quarter 2024 results

EditorAhmed Abdulazez Abdulkadir
Published 2024-11-07, 11:12 a/m
HWM
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Howmet Aerospace Inc. (HWM (BMV:HWM)), a leading player in the aerospace sector, announced its third quarter results for 2024. Executive Chairman and CEO John Plant, alongside EVP and CFO Ken Giacobbe, presented the company's financial performance, which includes forward-looking statements. They highlighted adjusted EBITDA, operating income, and EPS, all excluding special items, reflecting the company's focus on non-GAAP measures to provide a clearer picture of its financial health.

Key Takeaways

  • Howmet Aerospace's third quarter results were discussed by top executives, including John Plant and Ken Giacobbe.
  • The presentation included forward-looking statements and non-GAAP financial measures.
  • Adjusted EBITDA, operating income, and EPS were the key financial metrics highlighted, all excluding special items.
  • The call emphasized the company's recent financial performance and future expectations.

Company Outlook

  • Future events and expectations were discussed, but specific projections were not disclosed.

Bearish Highlights

  • Factors that could cause actual results to differ from projections were acknowledged, as per the SEC filings.

Bullish Highlights

  • The company's focus on adjusted financial measures suggests confidence in its core operational performance.

Misses

  • No specific misses were mentioned during the call.

Q&A Highlights

  • The Q&A session was structured to allow participants to ask one question each, ensuring a broad range of inquiries.

In summary, Howmet Aerospace's earnings call for the third quarter of 2024 provided investors with an overview of the company's financial metrics and strategic focus. While the executives discussed the adjusted financial results and acknowledged potential discrepancies with actual results, they did not provide specific future projections. The call highlighted the company's reliance on non-GAAP measures to assess its performance and the opportunity for participants to engage with management during the Q&A session.

InvestingPro Insights

Howmet Aerospace's recent financial performance aligns with several positive trends highlighted by InvestingPro data. The company's revenue growth of 13.2% over the last twelve months as of Q3 2024 demonstrates strong market demand for its aerospace products. This growth is further supported by a robust EBITDA growth of 27.54% over the same period, indicating improved operational efficiency.

InvestingPro Tips reveal that Howmet has raised its dividend for 4 consecutive years, which may appeal to income-focused investors. The company's dividend growth of 100% in the last twelve months is particularly noteworthy, although the current dividend yield stands at a modest 0.28%.

The stock's performance has been exceptional, with a 138.76% total return over the past year and a year-to-date return of 112.73%. This strong momentum is reflected in the stock trading near its 52-week high, with the current price at 97.57% of that peak.

While the P/E ratio of 41.58 (adjusted for the last twelve months) might seem high, it's worth noting that the PEG ratio is a more modest 0.57, suggesting the stock may be undervalued relative to its growth prospects. This aligns with the InvestingPro Tip indicating that Howmet is trading at a low P/E ratio relative to near-term earnings growth.

For investors seeking more comprehensive analysis, InvestingPro offers 18 additional tips for Howmet Aerospace, providing a deeper understanding of the company's financial health and market position.

Full transcript - Howmet Aerospace Inc (HWM) Q3 2024:

Operator: Good day and welcome to the Howmet Aerospace Third Quarter of 2024 Earnings Call. All participants will be in listen-only mode for the duration of the call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] On today's call, we ask that you please limit yourself to only one question. Also, please be aware that today's call is being recorded. I would now like to turn the call over to Paul Luther, Vice President of Investor Relations and FP&A. Please go ahead.

Paul Luther: Thank you, Joe. Good morning and welcome to the Howmet Aerospace third quarter 2024 results conference call. I'm joined by John Plant, Executive Chairman and Chief Executive Officer; and Ken Giacobbe, Executive Vice President and Chief Financial Officer. After comments by John and Ken, we will have a question-and-answer session. I would like to remind you that today's discussion will contain forward-looking statements relating to future events and expectations. You can find factors that could cause the company's actual results to differ materially from these projections listed in today's presentation and earnings press release and in our most recent SEC filings. In today's presentation references to EBITDA, operating income, and EPS mean adjusted EBITDA, excluding special items, adjusted operating income, excluding special items and adjusted EPS, excluding special items. These measures are among the non-GAAP

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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