Howmet Aerospace Inc. (NYSE:HWM) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for Howmet Aerospace Inc. (NYSE:HWM) shareholders, because the company has just released its latest full-year results, and the shares gained 4.1% to US$133. Results were roughly in line with estimates, with revenues of US$7.4b and statutory earnings per share of US$2.81. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Howmet Aerospace

Taking into account the latest results, the most recent consensus for Howmet Aerospace from 20 analysts is for revenues of US$8.10b in 2025. If met, it would imply a meaningful 9.0% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 15% to US$3.27. Before this earnings report, the analysts had been forecasting revenues of US$8.04b and earnings per share (EPS) of US$3.19 in 2025. So the consensus seems to have become somewhat more optimistic on Howmet Aerospace's earnings potential following these results.

There's been no major changes to the consensus price target of US$134, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Howmet Aerospace, with the most bullish analyst valuing it at US$160 and the most bearish at US$81.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Howmet Aerospace's rate of growth is expected to accelerate meaningfully, with the forecast 9.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Howmet Aerospace is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Howmet Aerospace's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Howmet Aerospace. Long-term earnings power is much more important than next year's profits. We have forecasts for Howmet Aerospace going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Howmet Aerospace that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.