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Howmet Aerospace stock rises 3% on strong guidance as commercial aerospace revenue jumps

EditorRachael Rajan
Published 06/11/2024, 13:52
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NEW YORK - Howmet Aerospace Inc. (NYSE:HWM (BMV:HWM)) shares gained 3.85% after the aerospace and transportation components maker reported third-quarter earnings that exceeded analyst expectations and raised its full-year outlook.

The Pittsburgh-based company posted adjusted earnings of $0.71 per share for the quarter ended September 30, surpassing the consensus estimate of $0.65. Revenue rose 11% year-over-year to $1.84 billion, slightly below analysts' projections of $1.85 billion.

Howmet's commercial aerospace segment, which accounts for a significant portion of its business, saw revenue jump 17% compared to the same period last year. This growth helped offset a 12% decline in the commercial transportation market.

"The Howmet team delivered a healthy set of results in the third quarter 2024," said Executive Chairman and CEO John Plant. He noted that adjusted EBITDA grew faster than revenue, up 27% year-over-year to $487 million.

Looking ahead, Howmet raised its full-year 2024 adjusted earnings guidance to a range of $2.65 to $2.67 per share, up from its previous forecast and above the $2.59 consensus. The company now expects annual revenue between $7.39 billion and $7.43 billion.

Plant expressed optimism about 2025, citing robust demand in commercial aerospace driven by healthy air traffic growth and significant needs for engine spare parts. Howmet anticipates approximately 7.5% year-over-year revenue growth in 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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