UPDATE: Howmet Aerospace (HWM) Reports Prelim. 1Q Revenues Miss

Howmet Aerospace (NYSE: HWM) reported Q1 EPS of $0.60, $0.11 better than the analyst estimate of $0.49. Revenue for the quarter came in at $3.26 billion versus the consensus estimate of $3.36 billion.

First Quarter 2020 Highlights

• Expected revenue of ~$3.2 billion, down ~9% YoY; expected organic revenue1 down ~6% YoY
• Net income is expected to be in the range of $205 million to $215 million, or $0.47 to $0.49 per share, versus net income of $187 million, or $0.39 per share, in the first quarter 2019
• Net income excluding special items is expected to be in the range of $265 million to $275 million, or $0.60 to $0.62 per share, versus $208 million, or $0.43 per share, in the first quarter 2019
• Operating income is expected to be approximately $400 million versus $374 million in the first quarter 2019, up ~7%
• Operating income excluding special items is expected to be approximately $475 million, up ~20% YoY
• Operating income margin excluding special items is expected to be up ~350 basis points YoY
• Cash balance of ~$2.65 billion as of March 31; $1.3 billion debt repayment on April 6

Howmet Aerospace Chairman and Co-Chief Executive Officer John Plant said, “The first quarter showed further performance progression both year over year and sequential quarter despite the disruptions during March due to COVID-19 both in Howmet Aerospace and Arconic Corporation plants as a result of customer shutdowns. The first wave of cost reductions has already been implemented as we focus on cost efficiency and cash conservation in light of the continuing turmoil in commercial aviation and aerospace. Other cash conservation actions are being implemented with capital expenditure reductions and temporary dividend suspension while the Company faces into these headwinds. Cash balances are healthy at two times the amount necessary to fund seasonal working capital changes, and the five-year revolver of $1.5 billion is undrawn.”

For earnings history and earnings-related data on Howmet Aerospace (HWM) click here.

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