NYSE$HWM
Howmet Aerospace Inc · Q4 2020 earnings
Q4 2020 earnings · · Investor relations
Briefing
Reported fourth quarter and full year results with revenue declining due to the impact of COVID-19 and Boeing 737 MAX production declines, but managed to surpass expectations through strong cash generation and cost management.
Howmet Aerospace reported Q4 2020 revenues of $1.2 billion, a 29% year-over-year decrease, but a 9% sequential increase from Q3 2020. The company's income from continuing operations was $106 million, or $0.24 per share, compared to $118 million, or $0.27 per share, in Q4 2019. Income from continuing operations excluding special items was $92 million, or $0.21 per share, versus $164 million, or $0.37 per share, in Q4 2019. The company ended the year with a cash balance of approximately $1.6 billion.
- Revenue of $1.2 billion, down 29% year over year; up $104 million sequentially
- Income from continuing operations of $106 million, or $0.24 per share
- Operating income of $221 million, down 22% year over year; up $148 million sequentially
- Cash balance at end of quarter increased to $1.6 billion
Headline financials
Revenue & EPS history
Howmet Aerospace · Revenue · Quarterly
$1.24B
Revenue by segment
Howmet Aerospace · $1.24B total across 4 segments · Q4 2020
- Engine Products$555M-68.0%44.8%
- Fastening Systems$263M—21.2%
- Engineered Structures$217M—17.5%
- Forged Wheels$203M—16.4%
Forward guidance
Howmet Aerospace issued its full year 2021 outlook, with revenue expected to be $5.05-$5.25 billion, Adjusted EBITDA between $1.07-$1.15 billion, Earnings Per Share Excluding Special Items between $0.75-$0.89, and Adjusted Free Cash Flow between $350-$450 million.
Tailwinds
- Revenue $5.05B-$5.25B with a baseline assumption of $5.10 billion
- Adjusted EBITDA $1.07B-$1.15B with a baseline assumption of $1.10 billion
- Earnings Per Share Excluding Special Items $0.75-$0.89 with a baseline assumption of $0.80
- Adjusted Free Cash Flow $350M-$450M with a baseline assumption of $400 million
- Defense aerospace, commercial transportation, and industrial gas turbine markets continue to be healthy and growing
Headwinds
- Howmet Aerospace has not provided reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures.
- The reconciliations are not available without unreasonable efforts due to the variability and complexity with respect to the charges and other components excluded from the non-GAAP measures.
- Commercial aerospace has less visibility
- The outlook is subject to the impact of the COVID-19 pandemic on Howmet Aerospace’s business, results of operations, and financial condition
- The outlook is subject to unfavorable changes in the markets served by Howmet Aerospace
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 Q4 2020
+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
| Quarter | Report date | Reaction (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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