NYSE$HWM

Howmet Aerospace Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Howmet Aerospace reported a decrease in revenue and earnings for Q1 2021 due to disruptions in the commercial aerospace market, but profits and margins exceeded expectations.

Howmet Aerospace reported Q1 2021 revenues of $1.2 billion, a 26% decrease year-over-year, and income from continuing operations of $80 million, or $0.18 per share. The decline was attributed to disruptions in the commercial aerospace market, but profits and margins exceeded expectations due to favorable product pricing and effective cost performance. The company ended the quarter with a cash balance of $1.2 billion after redeeming approximately $361 million of debt.

  • Revenue decreased by 26% year over year to $1.2 billion due to disruptions in the commercial aerospace market.
  • Income from continuing operations was $80 million, or $0.18 per share, compared to $153 million, or $0.35 per share, in Q1 2020.
  • Operating income was $189 million, a 27% decrease year over year.
  • Adjusted free cash flow was near breakeven, a first quarter record.

Headline financials

Total Revenue

$1.21B

Previous: $3.21B-62.3%
EPS (adj)

$0.22

Previous: $0.62-64.5%
Capital Expenditures

-$55M

Previous: -$69M+20.3%
Free Cash Flow

$25M

Previous: $146M-82.9%
Net Income

$80M

Previous: $215M-62.8%
Operating Income

$189M

Previous: $399M-52.6%
Gross Profit

-$873M

Previous: -$2.48B+64.7%
Cash & Equivalents

$1.24B

Previous: $2.59B-52.2%
Total Assets

$11B

Previous: $18.5B-40.6%

Revenue & EPS history

Howmet Aerospace · Revenue · Quarterly

$1.21B

Q1 2021-62.3%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Howmet Aerospace · $1.21B total across 4 segments · Q1 2021

  • Engine Products
    $534M-67.3%
  • Fastening Systems
    $272M
  • Forged Wheels
    $227M
  • Engineered Structures
    $176M

Forward guidance

Howmet Aerospace issued second quarter and updated full year 2021 guidance. For the second quarter, the company anticipates revenue of $1.17-$1.23 billion, Adjusted EBITDA of $260-$270 million, and Adjusted Earnings per Share of $0.19-$0.21. For the full year 2021, the company expects revenue of $5.05-$5.20 billion, Adjusted EBITDA of $1.125-$1.20 billion, Adjusted Earnings per Share of $0.91-$1.02 and Adjusted Free Cash Flow of $390-$460 million.

Tailwinds

  • Revenue is expected to be between $1.17B and $1.23B
  • Adjusted EBITDA is expected to be between $260M and $270M
  • Adjusted EPS is expected to be between $0.19 and $0.21
  • Revenue is expected to be between $5.05B and $5.20B for the full year
  • Adjusted free cash flow is expected to be between $390M and $460M for the full year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.6%

Avg return

Earnings day

+3.0%

Avg return

5 days after

+5.9%

Avg return

30 days after

60%

43 / 72 earnings

Positive

+22.0%

Q3 2020

Best reaction

-21.2%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+6.3%+4.0%-1.7%
Q1 2026+2.8%+4.0%-1.7%
Q3 2025-0.8%+0.8%+0.5%
Q2 2025-6.4%-6.7%-9.4%
Q1 2025+6.8%+12.4%+22.6%
Q4 2024-0.0%+6.7%-1.2%
Q3 2024+8.9%+12.3%+15.8%
Q2 2024+15.5%+8.8%+17.0%
Q4 2023+7.7%+6.8%+11.3%
Q3 2023+7.3%+7.9%+18.3%
Q2 2023-6.0%-4.1%-3.3%
Q1 2023+0.9%-0.7%-1.3%
Q4 2022+5.7%+4.7%-1.5%
Q3 2022+0.9%-0.4%+4.1%
Q2 2022-0.5%+0.6%-5.9%
Q1 2022+8.0%+3.5%+9.3%
Q4 2021+2.8%+3.8%+7.1%
Q3 2021+9.8%+8.7%-4.5%
Q2 2021-4.1%-4.4%-4.9%
Q1 2021+3.8%+0.2%+8.8%
Q4 2020+4.7%+6.2%+16.3%
Q3 2020+22.0%+18.6%+35.0%
Q2 2020+5.5%+13.7%+10.1%
Q1 2020-3.8%+5.6%+30.0%
Q4 2019+8.1%+2.9%+9.4%
Q3 2019+2.3%+0.7%+5.9%
Q2 2019-3.3%+3.5%+6.1%
Q1 2019+3.7%+8.3%+6.3%
Q4 2018-1.1%-7.0%-1.7%
Q3 2018+5.8%+10.1%+11.0%
Q2 2018+2.6%+1.8%+5.8%
Q1 2018-21.2%-23.3%-19.3%
Q4 2017-13.2%-15.3%-15.4%
Q3 2017-10.5%-9.4%-12.6%
Q2 2017+2.8%-1.0%+1.4%
Q1 2017+5.4%+4.7%+4.3%
Q4 2016+12.4%+15.1%+26.8%
Q3 2016+6.0%+9.6%+25.2%
Q2 2016-2.0%
Q1 2016-2.0%
Q4 2015+9.7%
Q3 2015-3.5%
Q2 2015-2.6%
Q1 2015+0.3%
Q4 2014-0.4%
Q3 2014+2.7%
Q2 2014-2.9%
Q1 2014+4.5%
Q4 2013+0.9%
Q3 2013+0.1%
Q2 2013+0.2%
Q1 2013-1.5%
Q4 2012-2.5%
Q4 2011-2.5%
Q3 2012-0.6%
Q2 2012+5.4%
Q1 2012+1.5%
Q3 2011+4.7%
Q2 2011+2.1%
Q1 2011-1.0%
Q4 2010-1.8%
Q4 2009-1.8%
Q3 2010+0.8%
Q2 2010-4.8%
Q1 2009+2.9%
Q1 2010+2.1%
Q4 2007-0.5%
Q3 2008-5.4%
Q3 2009-5.4%
Q2 2009+8.0%
Q2 2008+8.0%
Q4 2008+8.0%

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