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DAVIDSON, N.C. - Curtiss-Wright Corporation (NYSE:CW), a global provider of highly engineered products and services, has announced an expansion of its share repurchase program by $100 million, aiming to complete the buyback by the end of 2024. This decision comes on the heels of a recently completed $100 million repurchase and is in addition to the current $50 million program slated for this year. According to InvestingPro data, the company's stock has shown remarkable strength with a 65% gain year-to-date, though current analysis suggests the stock may be trading above its Fair Value.
The company has also outlined plans to further its share repurchases into 2025, with an expected $60 million in shares to be bought back starting in January, an increase from the previously announced annual plan of $50 million. These repurchases are anticipated to mitigate potential dilution from employee compensation plans. The company's strong financial position is reflected in its healthy current ratio of 1.98, indicating solid liquidity to support these initiatives.
Lynn M. Bamford, Chair and Chief Executive Officer of Curtiss-Wright Corporation, expressed confidence in the company's financial position, stating, "These increases are enabled by our healthy balance sheet and support our continued expectations for strong growth in profitability and free cash flow." Bamford also emphasized the company's commitment to disciplined capital allocation, including strategic acquisitions, reinvestment in the business, and returning capital to shareholders through repurchases and dividends. InvestingPro analysis reveals the company has maintained dividend payments for 51 consecutive years, demonstrating a strong track record of shareholder returns. For deeper insights into Curtiss-Wright's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Curtiss-Wright has a significant presence in the Aerospace & Defense markets, as well as in Commercial Power, Process, and Industrial sectors, providing solutions developed by its workforce of approximately 8,600 employees. The company prides itself on a legacy of innovation stemming from aviation pioneers Glenn Curtiss and the Wright brothers.
The expansion of the share repurchase program reflects Curtiss-Wright's strategy to enhance shareholder value and its belief in the company's future financial performance. This update is based on a press release statement from the corporation.
In other recent news, Curtiss-Wright reported a 10% year-over-year sales increase to nearly $800 million in the third quarter of 2024, primarily fueled by significant growth in the Defense Electronics and Naval & Power segments. The company has raised its full-year 2024 guidance, now anticipating sales growth of 7% to 9% and diluted EPS growth of 12% to 15%. Deutsche Bank (ETR:DBKGn) initiated coverage on Curtiss-Wright stock with a Buy rating and a price target of $452.00, highlighting potential returns from the company's base case earnings per share (EPS) growth, capital return options, a rebound in demand within the commercial nuclear industry, and opportunities in defense electronics. Additionally, the company announced two new stock repurchase plans set to commence in 2025, with a total budget of $160 million. Truist Securities boosted its price target to $333.00, while Stifel raised its price target for Curtiss-Wright from $361 to $370, both maintaining their respective ratings. These recent developments underline the company's robust market position, with strategic investments and partnerships, particularly in the commercial nuclear and defense sectors, driving this growth.
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