What Happened:
Shares of aerospace and defense company Howmet (NYSE:HWM) jumped 14% in the morning session after the company reported second-quarter earnings results. Howmet exceeded analysts’ revenue and earnings expectations this quarter. Moving on, its full-year revenue, EPS, and EBITDA guidance beat Wall Street’s estimates. Zooming out, we think this was a fantastic quarter that should have shareholders cheering.
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What is the market telling us:
Howmet’s shares are somewhat volatile and over the last year have had 3 moves greater than 5%. But moves this big are very rare even for Howmet and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Howmet is up 74.4% since the beginning of the year, and at $93.76 per share, has set a new 52-week high. Investors who bought $1,000 worth of Howmet’s shares 5 years ago would now be looking at an investment worth $3,727.
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Source Agencies
