HWM Earnings Prediction
The chart below shows how HWM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HWM sees a -5.03% change in stock price 10 days leading up to the earnings, and a +3.51% change 10 days following the report. On the earnings day itself, the stock moves by +4.74%. This data can give you a slight idea of what to expect for the next quarter's release.
HWM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.83B
10.68%
-2.39%
Gross Margin
28.01%
14.09%
0.50%
Operating Margin
22.89%
22.01%
2.46%
Net Margin
18.09%
59.52%
27.84%
EPS
0.81
80.00%
24.62%
No Data Available
HWM Earnings Analysis
Howmet Aerospace Inc. Corporation (HWM.N) Earnings Conference Call
Positive
Revenue Growth Acceleration: 1. Strong Revenue Growth: Howmet Aerospace reported an 11% year-over-year revenue growth in Q3 2024, building on a 14% growth in the first half of the year, with commercial aerospace revenue increasing by 17%.
Record EBITDA Achievement: 2. Record EBITDA and Margins: The company achieved a record EBITDA of $487 million with an EBITDA margin of 26.5%, reflecting a 27% increase in EBITDA year-over-year, significantly outpacing revenue growth.
Earnings Per Share Surge: 3. Significant EPS Increase: Earnings per share rose to $0.71, marking a 54% increase compared to the previous year, demonstrating strong profitability improvements.
Strong Free Cash Flow: 4. Robust Free Cash Flow: Howmet generated a strong free cash flow of $162 million in Q3, contributing to a year-to-date total of approximately $600 million, showcasing effective cash management.
Debt Reduction and Buybacks: 5. Debt Reduction and Share Buybacks: The company reduced its debt by approximately $282 million in Q3 and repurchased $100 million of common stock, reflecting a commitment to enhancing shareholder value.
Negative
European Market Impact: Wheels revenue was approximately $30 million below Q2, driven by notably weaker European market conditions, resulting in an 18% decrease in revenue.
Commercial Transportation Decline: The commercial transportation market weakened with revenue down 12% led by the slowdown in Europe and to a lesser extent, North America.
Forged Wheels Revenue Decline: Forged Wheels revenue was down 14% year-over-year as the long expected slowdown takes hold of the commercial transportation market.
Debt Management Cash Outflow: The quarter end cash balance of $475 million is after deploying $282 million to debt pay down, indicating a significant cash outflow for debt management.
Muted Truck Wheel Outlook: The outlook for commercial truck wheels continues to be muted in the fourth quarter of this year and the first two quarters of 2025.
HWM FAQs
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HWM Earning Call Sentiment
Howmet Aerospace Inc. (HWM) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HWM.N
-3.9%Positive
The earnings call summary indicates strong financial performance, with significant year-over-year growth in revenue, EBITDA, and EPS. The company has increased its dividend and share buyback program, which are positive signals to investors. Despite some concerns in the Q&A about production and margin uncertainties, the overall guidance is optimistic. The increased guidance for 2024 and a strong focus on shareholder returns suggest a positive stock price movement in the short term.