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.
Woodward (WWD) Down 5.5% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
A month has gone by since the last earnings report for Woodward (WWD - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Woodward due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Woodward Q2 Earnings Beat Estimates, Revenues Up Y/Y
Woodward reported net earnings of $1.01 per share for second-quarter fiscal 2023, 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%.
However, ongoing supply-chain and labor disruptions and unfavorable foreign currency exchange rates continued to be headwinds.
Segment Results
Aerospace: Net sales were $437 million, up 17% year over year. The upside can be attributed to higher commercial OEM (up 30% year over year) and commercial aftermarket sales (up 28% year over year), resulting from improving passenger traffic and fleet utilization. Yet, continued softness in defense OEM sales due to lower guided weapons sales and supply-chain disruptions were headwinds.
The segment’s earnings were $73 million, up from $60 million in the year-ago quarter. Price realization, higher commercial OEM and aftermarket sales resulted in the uptick. However, it was partly offset by inflation, and the annual incentive compensation.
Industrial: Net sales totaled $281 million, up 31% from the prior-year quarter due to higher demand across all markets. Nonetheless, forex volatility impacted sales by $11 million.
The segment’s earnings were $38 million, up from $17 million in the year-ago quarter, mainly due to higher volume and favorable product mix partly offset by inflation and annual incentive compensation.
Other Details
Total costs and expenses increased to $678 million, up 27.3% year over year. Adjusted EBITDA was $117.4 million compared with $90.7 million in the year-ago quarter.
Cash Flow & Liquidity
As of Mar 31, Woodward had $129.4 million in cash and cash equivalents with $652.1 million of long-term debt (less the current portion).
For the first half of fiscal 2023, Woodward generated $40 million of net cash from operating activities compared with $50 million in the comparable period in fiscal 2022. For the fiscal first half of 2023, adjusted free cash flow was ($1) million compared with $27 million in the comparable period in fiscal 2022. The downtick was mainly caused by increased capital expenditures.
Woodward repurchased shares worth $26 million in the six months ended Mar 31. In January 2022, the company authorized a new $800 million two-year stock repurchase program, reinforcing its financial position and positive outlook. The company has $328 million remaining under its share repurchase authorization.
Fiscal 2023 Outlook
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 revenues are anticipated to increase between 14% and 19%, while Industrial revenues are expected to remain flat to increase 5%.
Adjusted free cash flow is projected to be between $200 million and $250 million. Earnings are likely to be in the range of $3.15-$3.60 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 5.56% due to these changes.
VGM Scores
At this time, Woodward has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Woodward has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Woodward belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Badger Meter (BMI - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Badger Meter reported revenues of $159.1 million in the last reported quarter, representing a year-over-year change of +20.2%. EPS of $0.66 for the same period compares with $0.49 a year ago.
For the current quarter, Badger Meter is expected to post earnings of $0.66 per share, indicating a change of +15.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Badger Meter. Also, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Woodward (WWD) Down 5.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Woodward (WWD - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Woodward due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Woodward Q2 Earnings Beat Estimates, Revenues Up Y/Y
Woodward reported net earnings of $1.01 per share for second-quarter fiscal 2023, 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%.
However, ongoing supply-chain and labor disruptions and unfavorable foreign currency exchange rates continued to be headwinds.
Segment Results
Aerospace: Net sales were $437 million, up 17% year over year. The upside can be attributed to higher commercial OEM (up 30% year over year) and commercial aftermarket sales (up 28% year over year), resulting from improving passenger traffic and fleet utilization. Yet, continued softness in defense OEM sales due to lower guided weapons sales and supply-chain disruptions were headwinds.
The segment’s earnings were $73 million, up from $60 million in the year-ago quarter. Price realization, higher commercial OEM and aftermarket sales resulted in the uptick. However, it was partly offset by inflation, and the annual incentive compensation.
Industrial: Net sales totaled $281 million, up 31% from the prior-year quarter due to higher demand across all markets. Nonetheless, forex volatility impacted sales by $11 million.
The segment’s earnings were $38 million, up from $17 million in the year-ago quarter, mainly due to higher volume and favorable product mix partly offset by inflation and annual incentive compensation.
Other Details
Total costs and expenses increased to $678 million, up 27.3% year over year. Adjusted EBITDA was $117.4 million compared with $90.7 million in the year-ago quarter.
Cash Flow & Liquidity
As of Mar 31, Woodward had $129.4 million in cash and cash equivalents with $652.1 million of long-term debt (less the current portion).
For the first half of fiscal 2023, Woodward generated $40 million of net cash from operating activities compared with $50 million in the comparable period in fiscal 2022. For the fiscal first half of 2023, adjusted free cash flow was ($1) million compared with $27 million in the comparable period in fiscal 2022. The downtick was mainly caused by increased capital expenditures.
Woodward repurchased shares worth $26 million in the six months ended Mar 31. In January 2022, the company authorized a new $800 million two-year stock repurchase program, reinforcing its financial position and positive outlook. The company has $328 million remaining under its share repurchase authorization.
Fiscal 2023 Outlook
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 revenues are anticipated to increase between 14% and 19%, while Industrial revenues are expected to remain flat to increase 5%.
Adjusted free cash flow is projected to be between $200 million and $250 million. Earnings are likely to be in the range of $3.15-$3.60 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 5.56% due to these changes.
VGM Scores
At this time, Woodward has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Woodward has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Woodward belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Badger Meter (BMI - Free Report) , has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Badger Meter reported revenues of $159.1 million in the last reported quarter, representing a year-over-year change of +20.2%. EPS of $0.66 for the same period compares with $0.49 a year ago.
For the current quarter, Badger Meter is expected to post earnings of $0.66 per share, indicating a change of +15.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Badger Meter. Also, the stock has a VGM Score of C.