Howmet Aerospace Shares Drop After Q3 Revenue Miss; Sees Recovery In Mid-2023

  • Howmet Aerospace Inc HWM reported third-quarter revenue growth of 12% year-over-year to $1.43 billion, missing the consensus of $1.44 billion.
  • Adjusted EPS of $0.36 was in-line with the consensus.
  • Adjusted EBITDA margin contracted 30 bps to 22.5%
  • Howmet increased the quarterly dividend from $0.02 to $0.04 per share beginning in 4Q22.
  • Howmet Aerospace's cash balance was $454 million. As of October 28, 2022, the total share repurchase authorization available was $1.012 billion.
  • Executive Chair and CEO John Plant said, "Although the commercial aerospace end market saw an uneven pace of recovery in the third quarter 2022, all of Howmet Aerospace's aerospace-focused segments increased revenue sequentially."
  • Plant continued, "Looking ahead, we continue to expect the commercial aerospace end market to grow at above-trend rates for the next several years. Howmet Aerospace's defense aerospace market should also return to growth starting in the middle of 2023. We expect 2023 revenue growth versus 2022 to be up approximately 10%, plus or minus 2%."
  • 4Q22 Outlook: Howmet Aerospace expects revenue of $1.45 billion - $1.50 billion (consensus $1.50 billion) and adjusted EPS of $0.37- $0.39 (consensus $0.38).
  • FY22 Outlook: Howmet Aerospace expects revenue of $5.60 billion - $5.65 billion (prior view $5.645 billion - $5.715 billion), below the consensus of $5.67 billion.
  • Adjusted EPS of $1.39 - $1.41 (prior view $1.38 - $1.42) versus the consensus of $1.40.
  • Price Action: HWM shares traded lower by 4.48% at $34.55 in the premarket on the last check Monday.
  • Photo Via Company
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