Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Howmet (NYSE:HWM) and the best and worst performers in the aerospace industry.
Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.
The 13 aerospace stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2% above.
Luckily, aerospace stocks have performed well with share prices up 10.3% on average since the latest earnings results.
Howmet (NYSE:HWM)
Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Howmet reported revenues of $1.84 billion, up 10.7% year on year. This print fell short of analysts’ expectations by 1%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, “The Howmet team delivered a healthy set of results in the third quarter 2024.”
Interestingly, the stock is up 11.1% since reporting and currently trades at $113.45.
Is now the time to buy Howmet? Access our full analysis of the earnings results here, it’s free.
Best Q3: Ducommun (NYSE:DCO)
California’s oldest company, Ducommun (NYSE:DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.
Ducommun reported revenues of $201.4 million, up 2.6% year on year, outperforming analysts’ expectations by 3.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 1% since reporting. It currently trades at $66.03.
Is now the time to buy Ducommun? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Textron (NYSE:TXT)
Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.43 billion, up 2.5% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.
As expected, the stock is down 2.6% since the results and currently trades at $84.61.
Read our full analysis of Textron’s results here.
Rocket Lab (NASDAQ:RKLB)
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.
Rocket Lab reported revenues of $104.8 million, up 54.9% year on year. This number topped analysts’ expectations by 2.4%. It was a stunning quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations.
Rocket Lab scored the fastest revenue growth among its peers. The stock is up 77.3% since reporting and currently trades at $25.99.
Read our full, actionable report on Rocket Lab here, it’s free.
Curtiss-Wright (NYSE:CW)
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Curtiss-Wright reported revenues of $798.9 million, up 10.3% year on year. This result surpassed analysts’ expectations by 5.4%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.
Curtiss-Wright delivered the biggest analyst estimates beat among its peers. The stock is up 6.2% since reporting and currently trades at $375.05.
Read our full, actionable report on Curtiss-Wright here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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