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Woodward (WWD) Gains 11.3% YTD: Will the Uptrend Continue?
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Woodward (WWD - Free Report) , a leading designer, manufacturer and service provider of energy control and optimization solutions, is witnessing strong momentum this year. The stock has gained 11.3% year to date compared with the S&P Composite’s growth of 10.7%.
The increase in share price can be attributed to strong demand trends. The company is witnessing solid momentum in the Aerospace segment owing to higher commercial OEM and aftermarket sales. Improving passenger traffic and fleet utilization have resulted in the uptick.
Moreover, escalating geopolitical tensions are likely to boost defense spending, which is expected to bode well for Woodward.
Image Source: Zacks Investment Research
WWD anticipates growth in power generating market as a result of increased demand, which is driven by LNG growth and expansion. Increasing demand for backup power at data centers is another tailwind. The segment is likely to benefit from traction in global marine market due to higher utilization and stabilizing freight rates.
As a result, the company reported impressive performance in second-quarter fiscal 2023. Woodward reported net earnings of $1.01 per share, which beat the Zacks Consensus Estimate by 31.2%. In the year-ago quarter, WWD reported adjusted net earnings of 72 cents.
Net sales in the fiscal second quarter moved up 22% year over year to $718 million due to higher sales in the Aerospace and Industrial segments. The top line beat the consensus estimate by 11.1%.
For fiscal 2023, net sales are now expected in the range of $2.7-$2.8 billion compared with the earlier guided range of $2.6-$2.75 billion. Aerospace and Industrial revenues are anticipated to increase between 14% and 19%.
However, persistent weakness in defense OEM as a result of lower guided weapons sales is a concern. The company's margins are impacted by rising labor and material prices, supply-chain issues and annual incentive pay.
Stiff competition and increasing expenses are other major headwinds. In the last reported quarter, total costs and expenses increased to $678 million, up 27.3% year over year.
Notably, Woodward currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for revenues for fiscal 2023 and 2024 has increased 9.2% and 2.8%, respectively, in the past 60 days reflecting analysts’ optimism regarding WWD’s prospects.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 5.3%. Shares of BMI have gained75.1% in the past year.
The consensus estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 3.5% in the past year.
The consensus mark for Blackbaud’s 2023 earnings is pegged at $3.75 per share, up 9.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have increased 13.4% in the past year.
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Woodward (WWD) Gains 11.3% YTD: Will the Uptrend Continue?
Woodward (WWD - Free Report) , a leading designer, manufacturer and service provider of energy control and optimization solutions, is witnessing strong momentum this year. The stock has gained 11.3% year to date compared with the S&P Composite’s growth of 10.7%.
The increase in share price can be attributed to strong demand trends. The company is witnessing solid momentum in the Aerospace segment owing to higher commercial OEM and aftermarket sales. Improving passenger traffic and fleet utilization have resulted in the uptick.
Moreover, escalating geopolitical tensions are likely to boost defense spending, which is expected to bode well for Woodward.
Image Source: Zacks Investment Research
WWD anticipates growth in power generating market as a result of increased demand, which is driven by LNG growth and expansion. Increasing demand for backup power at data centers is another tailwind. The segment is likely to benefit from traction in global marine market due to higher utilization and stabilizing freight rates.
As a result, the company reported impressive performance in second-quarter fiscal 2023. Woodward reported net earnings of $1.01 per share, which beat the Zacks Consensus Estimate by 31.2%. In the year-ago quarter, WWD reported adjusted net earnings of 72 cents.
Net sales in the fiscal second quarter moved up 22% year over year to $718 million due to higher sales in the Aerospace and Industrial segments. The top line beat the consensus estimate by 11.1%.
For fiscal 2023, net sales are now expected in the range of $2.7-$2.8 billion compared with the earlier guided range of $2.6-$2.75 billion. Aerospace and Industrial revenues are anticipated to increase between 14% and 19%.
However, persistent weakness in defense OEM as a result of lower guided weapons sales is a concern. The company's margins are impacted by rising labor and material prices, supply-chain issues and annual incentive pay.
Stiff competition and increasing expenses are other major headwinds. In the last reported quarter, total costs and expenses increased to $678 million, up 27.3% year over year.
Notably, Woodward currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for revenues for fiscal 2023 and 2024 has increased 9.2% and 2.8%, respectively, in the past 60 days reflecting analysts’ optimism regarding WWD’s prospects.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Simulations Plus (SLP - Free Report) and Blackbaud (BLKB - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 5.3%. Shares of BMI have gained75.1% in the past year.
The consensus estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 3.5% in the past year.
The consensus mark for Blackbaud’s 2023 earnings is pegged at $3.75 per share, up 9.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have increased 13.4% in the past year.