Why Aerospace Company Howmet's Shares Are Surging Thursday
Portfolio Pulse from Lekha Gupta
Howmet Aerospace Inc. (NYSE:HWM) shares surged after reporting Q1 FY24 financial results exceeding expectations with a 14% Y/Y revenue increase to $1.82 billion and adjusted EPS of $0.57, surpassing the consensus. The company also raised its FY24 outlook, citing robust demand for air travel and a favorable demand outlook despite lower 737 MAX volumes. Howmet repurchased $150 million of common stock and plans to increase its quarterly dividend. Exposure to HWM can also be gained through IShares U.S. Aerospace & Defense ETF (BATS:ITA) and First Trust Indxx Aerospace & Defense ETF (NYSE:MISL).
May 02, 2024 | 4:34 pm
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POSITIVE IMPACT
Howmet Aerospace reported strong Q1 FY24 results, surpassing revenue and EPS expectations, and raised its FY24 outlook. The company also announced stock repurchases and plans to increase its dividend.
The positive earnings report and raised guidance indicate strong operational performance and future confidence, likely leading to increased investor confidence and potential stock price appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
IShares U.S. Aerospace & Defense ETF (ITA) includes Howmet Aerospace in its holdings, potentially benefiting from Howmet's strong Q1 FY24 performance and positive outlook.
As Howmet Aerospace is part of ITA's holdings, the ETF may see positive movement due to Howmet's strong performance and optimistic future projections, attracting investor interest in aerospace and defense.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75
POSITIVE IMPACT
First Trust Indxx Aerospace & Defense ETF (MISL) includes Howmet Aerospace, potentially benefiting from Howmet's reported earnings beat and optimistic FY24 guidance.
Given Howmet Aerospace's inclusion in MISL's portfolio, the ETF could experience positive impacts from Howmet's strong Q1 FY24 results and raised outlook, appealing to investors focused on aerospace and defense sectors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 75