Howmet Aerospace Stock Takes Off as Robust Demand Lifts Earnings

Shares of Howmet Aerospace (HWM) soared Tuesday aft nan shaper of pitchy motor parts and aluminum wheels for dense trucks posted better-than-expected income and profits for nan 2nd quarter. The Boeing (BA) supplier besides lifted its full-year guidance, citing beardown request trends successful commercialized aerospace.

Howmet's gross for nan 2nd 4th totaled $1.88 billion, up 14% from nan aforesaid play a twelvemonth agone and up of statement estimates calling for $1.83 billion. Strength successful commercialized aerospace sales, which accrued 27% twelvemonth complete year, underpinned nan gross growth. Second-quarter 2024 earnings per stock (EPS) of 65 exceeded statement forecasts of 60 cents, according to Visible Alpha data.

"The outlook for commercialized aerospace continues to beryllium robust, pinch beardown recreation request and an aging craft fleet," said Howmet Executive Chairman and CEO John Plant. According to Plant, this is starring to an elevated backlog for craft original instrumentality manufacturers (OEMs), which should construe to beardown request for Howmet's commercialized aerospace components.

Howmet shares vanished Tuesday up astir 13%, leaving them up much than 80% this year.

Plant recognized challenges for Howmet related to nan consistency and information issues faced by craft manufacturers, pinch Boeing's well-documented struggles starring to a slump successful deliveries this year. Current guidance factors successful these headwinds, Plant said.

Howmet lifted its full-year net and income guidance, presently anticipating 2024 EPS of $2.53 to $2.57 connected gross of $7.4 cardinal to $7.48 billion. The debased extremity of some ranges came successful supra existent statement forecasts.

After buying backmost $60 cardinal worthy of shares successful nan 2nd quarter, Howmet's committee of board authorized a $2 cardinal summation successful its buyback program. The institution besides boosted its dividend.