Howmet Aerospace Inc. HWM is scheduled to release third-quarter 2024 earnings on Nov. 6, before market open.

The Zacks Consensus Estimate for third-quarter earnings has remained steady in the past 60 days. HWM has an impressive earnings surprise history. Its earnings beat the consensus estimate in each of the preceding four quarters, delivering an average surprise of 10.9%.

Let’s see how things have shaped up for Howmet Aerospace before the announcement.

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Factors Likely to Have Shaped HWM’s Quarterly Performance

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 program, is likely to have driven the segment’s performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $945 million, indicating a 17.9% rise from the third-quarter 2023 number.

Growth in the commercial aerospace market, including emerging wide-body aircraft recovery, is likely to have supported the Fastening Systems segment's performance. The consensus estimate for segmental revenues is pegged at $386 million, indicating a 10.9% increase from the year-ago quarter’s number.

Growth in the commercial aerospace market, including wide-body aircraft recovery, and 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 $270 million, indicating an increase of 18.9% from the year-ago quarter’s figure.

However, softness in the commercial transportation market is likely to have hurt the Forged Wheels segment. The consensus estimate for the segment’s revenues is pegged at $258 million, indicating a decline of 9.5% from a year ago.

Escalating costs and expenses, due to raw material inflation, are also likely to have partially dented Howmet Aerospace’s bottom line.

Amid this backdrop, the Zacks Consensus Estimate for the company’s revenues is pegged at $1.85 billion, indicating an increase of 11.8% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at 65 cents per share, indicating 41.3% growth from the year-ago quarter’s number.

Earnings Whispers

Our proven model predicts an earnings beat for HWM this time around. The combination of a positiveEarnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below. 

Earnings ESP: HWM has an Earnings ESP of +1.86% as the Most Accurate Estimate is pegged at $1.24 per share, which is higher than the Zacks Consensus Estimate of $1.22. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: HWM currently carries a Zacks Rank of 3.

Performance of Another Company

Avery Dennison Corporation AVY delivered third-quarter adjusted earnings of $2.33 per share, which beat the Zacks Consensus Estimate of $2.32. The bottom line increased 9% year over year, driven by higher volume and productivity gains.

Total revenues grew 4.1% year over year to $2.18 billion and missed the consensus estimate of $2.2 billion.

Other Stocks to Consider

Here are two companies, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.

Tenaris S.A. TS has an Earnings ESP of +10.22% 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 third-quarter 2024 results on Nov. 6. Tenaris’ earnings surpassed the Zacks Consensus Estimate in two of the preceding four quarters and missed the mark in the other two, the average surprise being 11.6%.

Woodward, Inc. WWD has an Earnings ESP of +1.86% and a Zacks Rank of 3 at present. The company is slated to release third-quarter results on Nov. 25.

Woodward’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.5%.

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