Howmet Aerospace Inc. (NYSE:HWM) Q4 Earnings Preview

• Wall Street expects EPS of $0.71 and revenue of $1.88 billion for Q4 2024.
• Zacks Consensus Estimate projects an EPS of $0.72 and revenue of $1.9 billion, indicating positive analyst outlook.
• Key financial metrics highlight a P/E ratio of approximately 49, and a debt-to-equity ratio of about 0.75.

Howmet Aerospace Inc. (NYSE:HWM) is gearing up to release its fourth-quarter 2024 earnings on February 13, 2025. Wall Street anticipates earnings per share (EPS) of $0.71 and revenue of approximately $1.88 billion. The company, known for its aerospace components, has consistently exceeded earnings estimates in the past, with an average surprise of 11.4% over the last four quarters.

The Zacks Consensus Estimate projects slightly higher figures, with an EPS of $0.72 and revenue of $1.9 billion, reflecting an 8.4% increase from the previous year. This upward revision by one cent over the past 30 days suggests a positive outlook from analysts. Such revisions often influence investor behavior and can impact the stock's short-term price performance.

Howmet's performance is expected to be shaped by varying market conditions. While the transportation market faces challenges due to lower OEM builds, the commercial and defense aerospace sectors are anticipated to drive growth. This dynamic could bolster Howmet's results, potentially leading to another earnings surprise.

Investors are particularly interested in the possibility of a positive EPS surprise, which could significantly affect Howmet's stock performance. The company's management discussion during the earnings call will be crucial in assessing the sustainability of any immediate price changes and future earnings expectations.

HWM's financial metrics provide insight into its valuation. With a price-to-earnings (P/E) ratio of approximately 49, investors are paying $49 for every $1 of earnings. The company's price-to-sales ratio is about 7.23, and its enterprise value to sales ratio is around 7.63. These figures reflect the company's valuation relative to its sales and cash flow. Additionally, a debt-to-equity ratio of approximately 0.75 indicates a moderate level of debt, while a current ratio of about 2.24 suggests strong short-term financial health.