We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for Woodward (WWD) in Q3 Earnings?
Read MoreHide Full Article
Woodward, Inc. (WWD - Free Report) is scheduled to report fiscal third-quarter results on Jul 20, after the market closes. Last quarter, the company had reported a negative earnings surprise of 4.41%. Let’s see how things are shaping up for this quarter.
Factors to Consider
Woodward has been witnessing persistent softness in the Industrial business since the beginning of the year due to ongoing economic weakness in Asia and sluggish demand growth in China. These factors may have continued to dampen results in the to-be-reported quarter as well. Unfavorable foreign currency translation is another cause of concern.
Though management expects the Industrial segment to see growth in the second half of the year, it anticipates an overall year-over-year sales decline of 2–4% throughout this year. Also, note that Woodward relies on only a handful of customers, making it highly vulnerable to the loss or decline in business of even a single one of them.
On the positive side, the company has undertaken several strategic initiatives in the fiscal first and second quarter, which resulted in significant cost savings. This is expected to boost its performance in the second half of the year too.
The above chart indicates that Woodward was able to generate positive earnings surprises in two out of the last four quarters. The average negative surprise was 1.27%.
Earnings Whispers
Our proven model does not conclusively show that Woodward will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 79 cents.
Zacks Rank: Though Woodward’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few operators in Aerospace/Defense space worth considering on the basis of our model, which shows that they have the right combination of elements to post an earnings beat this quarter:
Lockheed Martin Corporation (LMT - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #2. The company is expected to report earnings on Jul 19, before the market opens.
General Dynamics Corporation (GD - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #2. The company is expected to report earnings on Jul 27, before the market opens.
Raytheon Company has an Earnings ESP of +17.07% and a Zacks Rank #2. The company is expected to report earnings on Jul 28, before the market opens.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
What's in Store for Woodward (WWD) in Q3 Earnings?
Woodward, Inc. (WWD - Free Report) is scheduled to report fiscal third-quarter results on Jul 20, after the market closes. Last quarter, the company had reported a negative earnings surprise of 4.41%. Let’s see how things are shaping up for this quarter.
Factors to Consider
Woodward has been witnessing persistent softness in the Industrial business since the beginning of the year due to ongoing economic weakness in Asia and sluggish demand growth in China. These factors may have continued to dampen results in the to-be-reported quarter as well. Unfavorable foreign currency translation is another cause of concern.
Though management expects the Industrial segment to see growth in the second half of the year, it anticipates an overall year-over-year sales decline of 2–4% throughout this year. Also, note that Woodward relies on only a handful of customers, making it highly vulnerable to the loss or decline in business of even a single one of them.
On the positive side, the company has undertaken several strategic initiatives in the fiscal first and second quarter, which resulted in significant cost savings. This is expected to boost its performance in the second half of the year too.
Surprise History
WOODWARD INC Price and EPS Surprise
WOODWARD INC Price and EPS Surprise | WOODWARD INC Quote
The above chart indicates that Woodward was able to generate positive earnings surprises in two out of the last four quarters. The average negative surprise was 1.27%.
Earnings Whispers
Our proven model does not conclusively show that Woodward will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 79 cents.
Zacks Rank: Though Woodward’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few operators in Aerospace/Defense space worth considering on the basis of our model, which shows that they have the right combination of elements to post an earnings beat this quarter:
Lockheed Martin Corporation (LMT - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #2. The company is expected to report earnings on Jul 19, before the market opens.
General Dynamics Corporation (GD - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #2. The company is expected to report earnings on Jul 27, before the market opens.
Raytheon Company has an Earnings ESP of +17.07% and a Zacks Rank #2. The company is expected to report earnings on Jul 28, before the market opens.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>