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Woodward (WWD) Beats on Q4 Earnings, Offers '17 Outlook
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Woodward, Inc. (WWD - Free Report) reported fourth-quarter fiscal 2016 earnings of 99 cents per share, beating the Zacks Consensus Estimate of 93 cents by 6.5%. Earnings also surged 28.6% from the prior-year figure of 77 cents.
Full-year earnings amounted to $2.85 per share, missing the Zacks Consensus Estimate of $2.97 by 4.2%. Reported earnings were, however, up 3.6% from the year-ago tally of $2.75.
Total Revenue
The company’s quarterly net sales of $590.9 million surpassed the Zacks Consensus Estimate of $569 million by 3.8%. Revenues were also up 5% from the year-ago figure of $562.6 million mainly on the back of higher contribution from the Aerospace segment.
However, fiscal 2016 net sales of $2.02 billion missed the Zacks Consensus Estimate of $2.10 billion by 3.8% and were down 1% from fiscal 2015.
Woodward’s total cost and expenses increased 3.3% year over year to $510.2 million in the reported quarter. Costs were up primarily due to higher cost of goods sold and an increase in selling, general, and administrative expenses.
Quarterly Segmental Performance
Aerospace: Segment revenues were up 9% year over year to $365.3 million driven by higher defense and commercial sales.
Earnings came in at $80.4 million, up 34% on the back of higher sales volumes and strong aftermarket activity.
Industrial: Segment revenues were $225.6 million, down 0.8% year over year owing to persistent weakness in reciprocating engines and other large capital projects. These were partially offset by robust OEM and aftermarket sales.
Nevertheless, earnings tanked 34.8% to $19.3 million primarily due to expenses associated with business alignment in view of the bleak market conditions and costs anticipated for the new facility in Colorado.
Woodward’s cash and cash equivalents as of Sep 30, 2016 were $81.1 million, compared with $82.2 million as of Sep 30, 2015.
Long-term debt (excluding current portion) was $577.2 million as of Sep 30, 2016, down from $848.5 million as of Sep 30, 2015.
Free cash inflow was $259.7 million in fiscal 2016, compared with 9.4 million in the year-ago period.
In fiscal 2016, net cash generated from operating activities was $435.4 million, compared with $296.0 million in the prior-year.
Payments for property, plant and equipment in fiscal 2016 were $175.7 million, compared with $286.6 million in the year-ago period.
Fiscal 2017 Guidance
Net sales are expected to increase 4−6% approximately. The company expects earnings in the range of $2.95–$3.25 per share.
Peer Releases
Roper Technologies, Inc. (ROP - Free Report) declared third-quarter 2016 adjusted earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.62 by 1.9%. Reported earnings were also 2.5% higher than the year-ago figure of $1.61.
Nanometrics Incorporated declared third-quarter 2016 adjusted earnings of 33 cents per share, beating the Zacks Consensus Estimate of 27 cents by 22.2%. Moreover, reported earnings were much higher than the year-ago figure of 3 cents.
Watts Water Technologies, Inc. (WTS - Free Report) declared third-quarter of 2016 adjusted earnings of 71 cents per share, beating the Zacks Consensus Estimate of 69 cents by 2.9%. Further, quarterly earnings improved 6% from the year-ago figure of 67 cents.
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Woodward (WWD) Beats on Q4 Earnings, Offers '17 Outlook
Woodward, Inc. (WWD - Free Report) reported fourth-quarter fiscal 2016 earnings of 99 cents per share, beating the Zacks Consensus Estimate of 93 cents by 6.5%. Earnings also surged 28.6% from the prior-year figure of 77 cents.
Full-year earnings amounted to $2.85 per share, missing the Zacks Consensus Estimate of $2.97 by 4.2%. Reported earnings were, however, up 3.6% from the year-ago tally of $2.75.
Total Revenue
The company’s quarterly net sales of $590.9 million surpassed the Zacks Consensus Estimate of $569 million by 3.8%. Revenues were also up 5% from the year-ago figure of $562.6 million mainly on the back of higher contribution from the Aerospace segment.
However, fiscal 2016 net sales of $2.02 billion missed the Zacks Consensus Estimate of $2.10 billion by 3.8% and were down 1% from fiscal 2015.
Operational Update
Woodward’s total cost and expenses increased 3.3% year over year to $510.2 million in the reported quarter. Costs were up primarily due to higher cost of goods sold and an increase in selling, general, and administrative expenses.
Quarterly Segmental Performance
Aerospace: Segment revenues were up 9% year over year to $365.3 million driven by higher defense and commercial sales.
Earnings came in at $80.4 million, up 34% on the back of higher sales volumes and strong aftermarket activity.
Industrial: Segment revenues were $225.6 million, down 0.8% year over year owing to persistent weakness in reciprocating engines and other large capital projects. These were partially offset by robust OEM and aftermarket sales.
Nevertheless, earnings tanked 34.8% to $19.3 million primarily due to expenses associated with business alignment in view of the bleak market conditions and costs anticipated for the new facility in Colorado.
WOODWARD INC Price, Consensus and EPS Surprise
WOODWARD INC Price, Consensus and EPS Surprise | WOODWARD INC Quote
Financial Condition
Woodward’s cash and cash equivalents as of Sep 30, 2016 were $81.1 million, compared with $82.2 million as of Sep 30, 2015.
Long-term debt (excluding current portion) was $577.2 million as of Sep 30, 2016, down from $848.5 million as of Sep 30, 2015.
Free cash inflow was $259.7 million in fiscal 2016, compared with 9.4 million in the year-ago period.
In fiscal 2016, net cash generated from operating activities was $435.4 million, compared with $296.0 million in the prior-year.
Payments for property, plant and equipment in fiscal 2016 were $175.7 million, compared with $286.6 million in the year-ago period.
Fiscal 2017 Guidance
Net sales are expected to increase 4−6% approximately. The company expects earnings in the range of $2.95–$3.25 per share.
Peer Releases
Roper Technologies, Inc. (ROP - Free Report) declared third-quarter 2016 adjusted earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.62 by 1.9%. Reported earnings were also 2.5% higher than the year-ago figure of $1.61.
Nanometrics Incorporated declared third-quarter 2016 adjusted earnings of 33 cents per share, beating the Zacks Consensus Estimate of 27 cents by 22.2%. Moreover, reported earnings were much higher than the year-ago figure of 3 cents.
Watts Water Technologies, Inc. (WTS - Free Report) declared third-quarter of 2016 adjusted earnings of 71 cents per share, beating the Zacks Consensus Estimate of 69 cents by 2.9%. Further, quarterly earnings improved 6% from the year-ago figure of 67 cents.
Zacks Rank
Woodward currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>