HOWMET AEROSPACE Reports Second Quarter Earnings Results for Fiscal Year 2023
August 14, 2023
🌥️Earnings Overview
For the second quarter of Fiscal Year 2023, HOWMET AEROSPACE ($NYSE:HWM) reported total revenue of USD 1648.0 million, a year-over-year increase of 18.3%. Net income also rose to USD 193.0 million, a 31.3% jump from the same quarter in 2023.
Price History
After the announcement, stock opened at $49.7 and closed at $49.0, showing a 4.2% decrease from prior closing price of 51.1. This decrease indicates market sentiment that may not have been favorable towards the news. While the revenue and profits have increased, the decline in stock price and net income indicate that investors may be concerned about the company’s performance in the face of increasing expenses. Nevertheless, investors will be watching closely to see how the company fares in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Howmet Aerospace. More…
| Total Revenues | Net Income | Net Margin |
| 6.2k | 530 | 10.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Howmet Aerospace. More…
| Operations | Investing | Financing |
| 772 | -175 | -598 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Howmet Aerospace. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.23k | 6.46k | 9.16 |
Key Ratios Snapshot
Some of the financial key ratios for Howmet Aerospace are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -22.9% | -12.4% | 15.2% |
| FCF Margin | ROE | ROA |
| 9.4% | 15.6% | 5.7% |
Analysis
At GoodWhale, we’ve been analyzing the financials of HOWMET AEROSPACE. According to our Star Chart, the company has an intermediate health score of 6/10, indicating that it might have enough cashflows and debt to pay off its debts and fund future operations. We classified HOWMET AEROSPACE as a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. Given these metrics, we believe that HOWMET AEROSPACE could be attractive to certain types of investors. The company is strong in dividend payments, medium in profitability, and weak in asset growth. All these metrics suggest that it could be a good option for investors looking for income and stability, while not necessarily expecting high returns. More…
Peers
Its main competitors are Rolls-Royce Holdings PLC, General Dynamics Corp, and Raytheon Technologies Corp.
– Rolls-Royce Holdings PLC ($LSE:RR.)
Rolls-Royce Holdings PLC is a British multinational engineering company incorporated in February 2011 that owns Rolls-Royce, a business founded in 1904 which today designs, manufactures and distributes power systems for aviation and other industries.
The company has a market cap of 7.25B as of 2022 and a Return on Equity of 21.06%. Rolls-Royce is a global leader in the design, manufacture and distribution of power systems for aviation and other industries. The company’s products and services power more than 35,000 aircraft and over 10,000 ships worldwide.
– General Dynamics Corp ($NYSE:GD)
General Dynamics Corporation is an American aerospace and defense conglomerate company formed by mergers and divestitures, and as of 2012, it is the fifth largest defense contractor in the world. It is headquartered in West Falls Church, The company has a market cap of 68.15B as of 2022 and a Return on Equity of 15.38%. The company is involved in the design, development, and manufacture of products and services for the aerospace and defense industries.
– Raytheon Technologies Corp ($NYSE:RTX)
Raytheon Technologies Corporation is an aerospace and defense company that provides products and services for the commercial, military, and government markets. The company has a market cap of 140.18B as of 2022 and a Return on Equity of 5.82%. Raytheon Technologies is a technology leader in defense, security, and commercial aerospace. The company’s products and services include aircraft engines, radar, and other electronic systems.
Summary
Investors may be disappointed to see Howmet Aerospace’s stock price dip following their second quarter earnings report for fiscal year 2023. While total revenue was up 18.3% year-over-year, net income rose 31.3%, indicating a healthy jump in profits. Nevertheless, the company’s stock may need more time to reflect its financial performance, and investors should pay attention to the sustainability of Howmet Aerospace’s growth. Analysts will be looking for signs of increasing margins and further strengthening of the balance sheet in the coming quarters.
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