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 -4.99% change in stock price 10 days leading up to the earnings, and a +4.07% change 10 days following the report. On the earnings day itself, the stock moves by +4.55%. 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
1.89B
9.24%
3.05%
Gross Margin
27.97%
11.84%
-0.14%
Operating Margin
23.53%
19.44%
2.80%
Net Margin
16.60%
21.79%
-8.24%
EPS
0.77
35.09%
-4.94%
No Data Available
HWM Earnings Analysis
Howmet Aerospace Inc Corporation (HWM.N) Earnings Conference Call
Positive
Earnings Per Share Surge: Fourth quarter earnings per share were $0.74, a 40% increase over the prior year, concluding the year at $2.69, which represents a 46% increase year over year and is 25% higher than the initial guidance for 2024.
Record Free Cash Flow: Free cash flow for the year reached a record $977 million, representing an 88% conversion of net income, with all cash deployed to share repurchases, debt reduction, and dividends.
Stock Repurchase and Debt Reduction: During 2024, Hammitt repurchased $500 million of common stock, including $190 million completed in Q4, and reduced debt by $365 million, while also paying $109 million in dividends, which was a 53% increase year over year.
EBITDA Margin Expansion: Revenue for the full year was up 12%, with EBITDA growth outpacing revenue growth at 27%, resulting in a full year EBITDA margin increase of 310 basis points to 25.8%.
Spares Revenue Surge: Spares revenue increased approximately 25% for the year to $1.28 billion, representing 17% of total revenue, with strong growth expected to continue into 2025.
Negative
Commercial Transportation Decline: Commercial transportation revenues decreased by 12% in Q4 and 7% for the full year, indicating significant challenges in this segment.
Forged Wheels Revenue Decline: Forged wheels revenue declined by 12% year over year in Q4, with a full year revenue drop of 8%, reflecting ongoing market weakness.
Engine Segment Margin Decline: Despite overall revenue growth, the Engine segment experienced a slight margin decline of 150 basis points quarter over quarter, raising concerns about future profitability.
Debt Pay Down Outlook: The company anticipates a muted debt pay down in 2025 compared to 2024, suggesting a potential increase in leverage and financial risk.
Working Capital Strain: Working capital is expected to burn approximately $180 million in 2025, indicating a strain on cash flow management amidst rising operational costs.
HWM FAQs
How does HWM typically perform around its earnings report dates?
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HWM Earning Call Sentiment
Earnings call transcript: Howmet Aerospace Q4 2024 beats EPS forecast, stock dips
HWM.N
2.38%Positive
The earnings call presents a positive outlook with strong financial metrics, including a 40% YoY EPS increase and a 12% revenue growth. The company announced a 25% dividend increase and significant share repurchases, enhancing shareholder returns. Despite conservative guidance due to supply chain concerns, the positive mix change in Fastening Systems and improved margins across segments indicate operational efficiency. The Q&A section reveals cautious optimism, but overall, the robust financial performance and strategic initiatives suggest a positive stock price movement in the short term.
