Howmet Aerospace Gears Up to Post Q4 Earnings: Here's What to Expect

Howmet Aerospace Inc. HWM is scheduled to release fourth-quarter 2024 earnings on Feb. 13, before market open. The Zacks Consensus Estimate for revenues is pegged at $1.9 billion, indicating growth of 8.4% from the prior-year quarter’s figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The consensus mark for earnings is pinned at 72 cents per share, which has increased a penny in the past 30 days. The figure indicates a jump of 35.9% from the prior-year figure. HWM surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 11.4%. The company’s bottom line surpassed the Zacks Consensus Estimate by 9.2% in the last reported quarter.Let’s see how things have shaped up for Howmet Aerospace before the announcement.Factors Likely to Have Shaped HWM’s Quarterly PerformanceWeakness in the commercial transportation market, due to lower OEM builds, is expected to have weighed on the performance of the Forged Wheels segment. Production issues at Boeing, due to quality control challenges and labor union work stoppage, are expected to have adversely impacted narrow-body and wide-body production rates. The company is dependent on a global supply chain, and in recent years, it experienced supply-chain disruptions in the aerospace sector that resulted in delays and increased costs. Persistent supply-chain issues in the aerospace sector are likely to have affected the delivery of its finished products to its customers within the stipulated time.High operating costs are likely to have posed a threat to HWM’s bottom line. The company’s investments in innovation, technology and research & development are expected to have pushed up its operating expenses, which are likely to have reflected in its margins. Also, it has considerable exposure to overseas markets. Given its extensive presence in international markets, foreign currency headwinds are likely to have affected its top line.Nevertheless, Howmet Aerospace’s Engine products segment is expected to have benefited from robust momentum in the commercial aerospace, defense aerospace, industrial gas turbine and oil & gas markets. Solid demand for engine spares in aerospace markets, supported by the U.S.  fighter programs, is likely to have driven the segment’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $968 million, indicating a 13.5% rise from the fourth-quarter 2023 number.Growth in the commercial aerospace market, including wide-body aircraft recovery, is likely to have supported the Fastening Systems segment's performance. The consensus estimate for segmental revenues is pegged at $404 million, indicating a 12.2% increase from the year-ago quarter’s number.Persistent strength in the defense aerospace market is expected to have driven the Engineered Structures segment’s performance. The consensus estimate for the segment’s revenues is pegged at $263 million, indicating an increase of 6.9% from the year-ago quarter’s figure.Howmet Aerospace Inc. Price and EPS Surprise Howmet Aerospace Inc. price-eps-surprise | Howmet Aerospace Inc. QuoteEarnings WhispersOur proven model doesn’t conclusively predict an earnings beat for Howmet Aerospace 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. That is not the case here, as elaborated below.Earnings ESP: HWM has an Earnings ESP of +0.62%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).Stocks With the Favorable CombinationHere are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.Lincoln Electric LECO has an Earnings ESP of +1.17% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The company is scheduled to release fourth-quarter results on Feb. 13. LECO’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 5.4%.Flowserve Corporation FLS has an Earnings ESP of +2.60% and a Zacks Rank of 3 at present. The company is slated to release fourth-quarter results on Feb. 18.Flowserve’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in one, the average surprise being 10.8%.ESAB Corporation ESAB has an Earnings ESP of +1.75% and a Zacks Rank of 3 at present. The company is slated to release its fourth-quarter 2024 results on Feb. 20.ESAB’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.3%.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flowserve Corporation (FLS): Free Stock Analysis Report Lincoln Electric Holdings, Inc. (LECO): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis Report ESAB Corporation (ESAB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks