Howmet Aerospace shares vaulted to break out Thursday. The Pittsburgh-based defense and engine components maker cleared Q1 views and hiked its guidance and dividend.

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Howmet Aerospace (HWM) reported a 36% earnings increase to 57 cents per share. Revenue jumped 14% year-over-year to a record $1.82 billion, driven by a 23% increase in commercial aerospace sales.

Free cash flow came out to $95 million for the quarter, which marked the first time Howmet achieved positive cash flow in Q1.

The results beat FactSet earnings expectations of 52 cents per share on $1.74 billion in revenue.

CEO John Plant noted air travel demand remains robust and continues to exceed pre-pandemic levels providing a healthy backdrop for the industry. However, Boeing (BA) 737 Max quality issues have resulted in slower-than-expected 737 production. Howmet now expects “sharply lower” 737 Max volumes with an average build rate of 20 per month. Still, the company boosted its 2024 revenue guidance by $200 million due to stronger demand in other portions of its business.

Howmet hiked its 2024 earnings outlook to range from $2.31 to $2.39 per share, up from its previous outlook of $2.10 to $2.20. It now forecasts revenue to range from $7.225 billion to $7.375 billion, increased from $7 billion to $7.2 billion.

FactSet analysts predict Howmet’s 2024 earnings increase 20% to $2.21 per share on 7.6% sales growth to $7.14 billion.

Howmet guided Q2 earnings between 57 cents and 59 cents per share on $1.825 billion to $1.845 billion in revenue.

The company plans to boost its third-quarter dividend by 40% to 7 cents per share. Howmet on Feb. 26 paid a quarterly dividend of 5 cents per share.

Howmet Aerospace Stock

HWM stock leapt 15% early Thursday to new all-time highs. Shares hit a breakaway gap-type breakout on the move, rallying above a 69.55 buy point for an eight-week flat base.

Howmet Aerospace spiked more than 23% so far this year through Wednesday’s close.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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