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Woodward (WWD) Restructures its Aerospace & Industrial Segment
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Woodward (WWD - Free Report) has announced a new Aerospace and Industrial organizational structure as well as streamlining of leadership.
The new structure entails consolidating the company’s different business groups under its existing business segments - Aerospace and Industrial. The leadership changes are implemented to improve customer sales experience, streamline processes and boost profitability through better execution.
The Aerospace segment is involved in producing, designing and servicing products such as pumps, cockpit controls, motors and sensors for commercial aircraft manufacturers like The Boeing Company and General Dynamics Corp.
Under the new organizational restructuring, Aircraft Turbine Systems and Aero Systems will now be merged within the Aerospace segment. Terry Voskuil and Roger Ross will serve as president and senior vice president for Aerospace Segment and Missiles &Space unit, respectively. The company wants to tap the growing demand for Missiles and Space applications.
According to the company, U.S. defence spending may rise as a result of rising geopolitical tensions and a minor increase in U.S. defence procurement in the near future.
Per a report from Fortune Business Insights, the global rocket and missile market is projected to grow from $61.96 billion in 2022 to $84.77 billion by 2029, at a CAGR of 4.58% from 2022 to 2029. The industry is expected to benefit from increased defense spending and the dynamic nature of military technology, added the report.
In the last reported quarter, the Aerospace segment posted net sales of $402 million, up 18% year over year. The upside can be attributed to higher commercial original equipment manufacturer (OEM) (up 37% year over year) and aftermarket sales (up 44%) resulting from improving passenger traffic and aircraft utilization along with higher OEM production rates.
For fiscal 2022, the Aerospace segment revenues are expected to increase between 8% and 10%. Also, earnings as a percent of segment net sales are expected to be approximately 15%.
The new structure also involves changes to the company’s industrial segment. The Industrial segment produces power converters, ignition systems and injectors, among others and generates revenues mainly from OEMs through aftermarket sales.
Engine Systems and Turbomachinery Systems will now be merged within the Industrial segment. The company has selected Randy Hobbs as the new president of the Industrial segment.
In the last reported quarter, the Industrial segment posted net sales of $213 million compared with $216 million in the prior-year quarter. The decline was due to the negative impact of unfavorable foreign exchange and weakness in China’s natural gas engines. However, it was mitigated by higher marine sales and increased utilization of the in-service fleet.
For fiscal 2022, the Industrial segment revenues are expected to remain flat. Also, earnings as a percent of segment net sales are expected to be between 9% and 10%.
The strong expansion in Asia and high demand for backup power at data centers is driving demand for industrial turbo machinery in the power generation industry, the company had noted during the last reported quarter. The company continues to invest heavily in research and development to develop clean fuel for powerful engines.
However, the company has lowered its guidance for fiscal 2022 owing to supply-chain and labor disruptions and inflation. For fiscal 2022, net sales are now expected to be between $2.35 billion and $2.4 billion compared with the earlier guidance of $2.4 billion and $2.55 billion.
Woodward currently has a Zacks Rank #4 (Sell). Shares of the company have lost 22.9% compared with the industry’s decline of 24.8% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Aspen Technology (AZPN - Free Report) . Pure Storage and InterDigital currently sport a Zacks Rank #1 (Strong Buy), whereas Aspen Technology presently carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 29.5% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 7% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2023 earnings is pegged at $6.77 per share, increasing 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.2%.
Aspen Technology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 6.2%. Shares of AZPN have increased 53.4% in the past year.
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Woodward (WWD) Restructures its Aerospace & Industrial Segment
Woodward (WWD - Free Report) has announced a new Aerospace and Industrial organizational structure as well as streamlining of leadership.
The new structure entails consolidating the company’s different business groups under its existing business segments - Aerospace and Industrial. The leadership changes are implemented to improve customer sales experience, streamline processes and boost profitability through better execution.
The Aerospace segment is involved in producing, designing and servicing products such as pumps, cockpit controls, motors and sensors for commercial aircraft manufacturers like The Boeing Company and General Dynamics Corp.
Woodward, Inc. Price and Consensus
Woodward, Inc. price-consensus-chart | Woodward, Inc. Quote
Under the new organizational restructuring, Aircraft Turbine Systems and Aero Systems will now be merged within the Aerospace segment. Terry Voskuil and Roger Ross will serve as president and senior vice president for Aerospace Segment and Missiles &Space unit, respectively. The company wants to tap the growing demand for Missiles and Space applications.
According to the company, U.S. defence spending may rise as a result of rising geopolitical tensions and a minor increase in U.S. defence procurement in the near future.
Per a report from Fortune Business Insights, the global rocket and missile market is projected to grow from $61.96 billion in 2022 to $84.77 billion by 2029, at a CAGR of 4.58% from 2022 to 2029. The industry is expected to benefit from increased defense spending and the dynamic nature of military technology, added the report.
In the last reported quarter, the Aerospace segment posted net sales of $402 million, up 18% year over year. The upside can be attributed to higher commercial original equipment manufacturer (OEM) (up 37% year over year) and aftermarket sales (up 44%) resulting from improving passenger traffic and aircraft utilization along with higher OEM production rates.
For fiscal 2022, the Aerospace segment revenues are expected to increase between 8% and 10%. Also, earnings as a percent of segment net sales are expected to be approximately 15%.
The new structure also involves changes to the company’s industrial segment. The Industrial segment produces power converters, ignition systems and injectors, among others and generates revenues mainly from OEMs through aftermarket sales.
Engine Systems and Turbomachinery Systems will now be merged within the Industrial segment. The company has selected Randy Hobbs as the new president of the Industrial segment.
In the last reported quarter, the Industrial segment posted net sales of $213 million compared with $216 million in the prior-year quarter. The decline was due to the negative impact of unfavorable foreign exchange and weakness in China’s natural gas engines. However, it was mitigated by higher marine sales and increased utilization of the in-service fleet.
For fiscal 2022, the Industrial segment revenues are expected to remain flat. Also, earnings as a percent of segment net sales are expected to be between 9% and 10%.
The strong expansion in Asia and high demand for backup power at data centers is driving demand for industrial turbo machinery in the power generation industry, the company had noted during the last reported quarter. The company continues to invest heavily in research and development to develop clean fuel for powerful engines.
However, the company has lowered its guidance for fiscal 2022 owing to supply-chain and labor disruptions and inflation. For fiscal 2022, net sales are now expected to be between $2.35 billion and $2.4 billion compared with the earlier guidance of $2.4 billion and $2.55 billion.
Woodward currently has a Zacks Rank #4 (Sell). Shares of the company have lost 22.9% compared with the industry’s decline of 24.8% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Aspen Technology (AZPN - Free Report) . Pure Storage and InterDigital currently sport a Zacks Rank #1 (Strong Buy), whereas Aspen Technology presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 29.5% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 7% in the past year.
The Zacks Consensus Estimate for Aspen Technology’s fiscal 2023 earnings is pegged at $6.77 per share, increasing 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.2%.
Aspen Technology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 6.2%. Shares of AZPN have increased 53.4% in the past year.