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Woodward (WWD) to Post Q4 Earnings: Key Factors to Note
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Woodward, Inc (WWD - Free Report) is scheduled to report fourth-quarter 2022 results on Nov 17.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $626.1 million, which suggests growth of 9.8% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 72 cents per share, indicating a year-over-year decrease of 12.2%.
The company reported that third-quarter 2022 adjusted net earnings came in at 64 cents per share, declining 13.5% year over year. The bottom line missed the Zacks Consensus Estimate by 29.7%. Net sales in the fiscal third quarter moved up 10.2% year over year to $614 million, which lagged the consensus estimate by 3.1%.
The company’s performance in the fourth quarter is likely to have benefited from continued momentum in the company’s aerospace segment. The segment is expected to have benefited from higher commercial OEM and aftermarket sales resulting from improving passenger traffic and aircraft utilization, along with higher OEM production rates.
Also, a rise in U.S. defense spending as a result of rising geopolitical tensions and a minor increase in U.S. defense procurement is likely to have boosted the segment’s revenues.
For fiscal 2022, the company expects Aerospace segment revenues increase between 8% and 10%. Also, earnings as a percent of segment net sales are expected to be approximately 15%.
In October, Woodward announced that it is consolidating the company’s different business groups under its existing business segments - Aerospace and Industrial. Under the new organizational restructuring, Aircraft Turbine Systems and Aero Systems will now be merged within the Aerospace segment.
The company expects the power generation market to pick up pace, owing to rising demand for industrial turbo machinery and backup power at data centers.
The company continues to invest in research and development to minimize fuel consumption and emissions and to aid clients to tackle increasing fuel and motion control challenges and help them develop clean fuel for running 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.
What Our Model Says
Our proven model does not predict an earnings beat for WWD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
WWD has an Earnings ESP of -5.88% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our proven model shows that these too have the right mix of elements to beat estimates this time around.
The Zacks Consensus Estimate for Helmerich & Payne’s to-be-reported quarter’s earnings and revenues is pegged at 43 cents per share and $591.35 million, respectively. Helmerich & Payne’s surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 118.2%. Shares of HP increased 58.1% in the past year.
StoneCo (STNE - Free Report) has an Earnings ESP of +45.46% and currently has a Zacks Rank #2. StoneCo is scheduled to report earnings on Nov 17.
The Zacks Consensus Estimate for StoneCo’s to-be-reported quarter’s earnings and revenues is pegged at 6 cents per share and $492.95 million, respectively. Shares of STNE decreased 65.4% in the past year.
The J.M. Smucker Co. (SJM - Free Report) has an Earnings ESP of +1.06% and currently has a Zacks Rank #1. The J.M. Smucker Co is scheduled to report earnings on Nov 21.
The Zacks Consensus Estimate for The J.M. Smucker’s to-be-reported quarter’s earnings and revenues is pegged at $2.17 and $2.16 billion, respectively. The J.M. Smucker’s surpassed earnings estimates in all of the preceding four quarters, delivering an average surprise of 20.84%. Shares of SJM increased 11.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Woodward (WWD) to Post Q4 Earnings: Key Factors to Note
Woodward, Inc (WWD - Free Report) is scheduled to report fourth-quarter 2022 results on Nov 17.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $626.1 million, which suggests growth of 9.8% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 72 cents per share, indicating a year-over-year decrease of 12.2%.
The company reported that third-quarter 2022 adjusted net earnings came in at 64 cents per share, declining 13.5% year over year. The bottom line missed the Zacks Consensus Estimate by 29.7%. Net sales in the fiscal third quarter moved up 10.2% year over year to $614 million, which lagged the consensus estimate by 3.1%.
Woodward, Inc. Price and EPS Surprise
Woodward, Inc. price-eps-surprise | Woodward, Inc. Quote
Factors to Note
The company’s performance in the fourth quarter is likely to have benefited from continued momentum in the company’s aerospace segment. The segment is expected to have benefited from higher commercial OEM and aftermarket sales resulting from improving passenger traffic and aircraft utilization, along with higher OEM production rates.
Also, a rise in U.S. defense spending as a result of rising geopolitical tensions and a minor increase in U.S. defense procurement is likely to have boosted the segment’s revenues.
For fiscal 2022, the company expects Aerospace segment revenues increase between 8% and 10%. Also, earnings as a percent of segment net sales are expected to be approximately 15%.
In October, Woodward announced that it is consolidating the company’s different business groups under its existing business segments - Aerospace and Industrial. Under the new organizational restructuring, Aircraft Turbine Systems and Aero Systems will now be merged within the Aerospace segment.
The company expects the power generation market to pick up pace, owing to rising demand for industrial turbo machinery and backup power at data centers.
The company continues to invest in research and development to minimize fuel consumption and emissions and to aid clients to tackle increasing fuel and motion control challenges and help them develop clean fuel for running 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.
What Our Model Says
Our proven model does not predict an earnings beat for WWD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
WWD has an Earnings ESP of -5.88% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our proven model shows that these too have the right mix of elements to beat estimates this time around.
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +15.10% and currently has a Zacks Rank #1. Helmerich & Payne is scheduled to report earnings on Nov 17. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Helmerich & Payne’s to-be-reported quarter’s earnings and revenues is pegged at 43 cents per share and $591.35 million, respectively. Helmerich & Payne’s surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 118.2%. Shares of HP increased 58.1% in the past year.
StoneCo (STNE - Free Report) has an Earnings ESP of +45.46% and currently has a Zacks Rank #2. StoneCo is scheduled to report earnings on Nov 17.
The Zacks Consensus Estimate for StoneCo’s to-be-reported quarter’s earnings and revenues is pegged at 6 cents per share and $492.95 million, respectively. Shares of STNE decreased 65.4% in the past year.
The J.M. Smucker Co. (SJM - Free Report) has an Earnings ESP of +1.06% and currently has a Zacks Rank #1. The J.M. Smucker Co is scheduled to report earnings on Nov 21.
The Zacks Consensus Estimate for The J.M. Smucker’s to-be-reported quarter’s earnings and revenues is pegged at $2.17 and $2.16 billion, respectively. The J.M. Smucker’s surpassed earnings estimates in all of the preceding four quarters, delivering an average surprise of 20.84%. Shares of SJM increased 11.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.