Howmet Aerospace Inc. (HWM) shares are up 8% to $110.33 as of 10:27 am on Wednesday, following the release of its third-quarter 2024 earnings report that exceeded market expectations. The company reported earnings of $0.81 per share, surpassing the consensus estimate of $0.65, and marking a significant increase from $0.45 per share in the same quarter last year. Revenue for the quarter rose 11% year-over-year to $1.84 billion, driven by a 17% growth in the commercial aerospace segment. Additionally, Howmet raised its full-year earnings guidance to a range of $2.65 to $2.67 per share, up from the previous forecast of $2.53 to $2.57, reflecting strong demand in the aerospace market.
The company's robust performance was further highlighted by a 27% year-over-year increase in adjusted EBITDA, reaching $487 million, with margins improving by 350 basis points to 26.5%. This financial strength is attributed to the surging demand for engine products, as major aviation players like Airbus and Boeing ramp up production to meet rising air travel needs.