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Woodward (WWD) Announces $600 Million Share Repurchase Plan
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Woodward (WWD - Free Report) declared a dividend of 25 cents per share, up by about 14% compared with the previous quarter's dividend of 22 cents per share. This dividend will be paid on Mar 5, 2024, to shareholders recorded as of Feb 20, 2024.
Additionally, the company’s board of directors approved a new three-year stock repurchase program, allowing the company to buy back up to $600 million worth of its stock through open market or private transactions. This program replaces the prior two-year $800 million repurchase program, initiated in January 2022, during which Woodward repurchased around $572 million in stock.
These moves highlight the company’s robust financial position, cash generation capabilities, and its strategy of balancing capital allocation by returning cash to shareholders through dividends and stock repurchases.
The company’s performance is benefiting from strengthening momentum across both the business segments — Aerospace and Industrial. Revenues from Woodward’s Aerospace business are expected to improve in the upcoming quarters, driven by strength in commercial markets as well as higher defense activity.
The Industrial segment is benefiting from robust demand for power generation, especially in Asia, and increasing requirements for backup power for data centers. Increasing investment in LNG infrastructure development and higher demand for alternative fuels across the marine industry are positives.
The segment is also likely to be aided by momentum in the global marine market brought on by higher utilization and rising shipbuilding rates. For fiscal 2024, management expects the Industrial segment’s sales growth between 4% and 6%.
Revenues for fiscal 2024 and 2025 are forecasted to rise 14.9% and 5.7% to $3.19 billion and $3.37 billion, respectively.
Woodward’s earnings per share (EPS) are expected to climb 16.7% and 15.1% on a year-over-year basis to $4.92 and $5.66 in fiscal 2024 and 2025, respectively. The Zacks Consensus Estimate for fiscal 2024 and 2025 EPS has improved 7.2% and 15%, respectively, in the past 60 days.
Currently, Woodward sports a Zacks Rank #1 (Strong Buy). Woodward’s shares have rallied 27.5% in the past year compared with 13.1% growth of the sub-industry.
The Zacks Consensus Estimate for Itron’s 2023 EPS has inched up 3.2% in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the past 30 days.
NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have lost 29.5% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.
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Woodward (WWD) Announces $600 Million Share Repurchase Plan
Woodward (WWD - Free Report) declared a dividend of 25 cents per share, up by about 14% compared with the previous quarter's dividend of 22 cents per share. This dividend will be paid on Mar 5, 2024, to shareholders recorded as of Feb 20, 2024.
Additionally, the company’s board of directors approved a new three-year stock repurchase program, allowing the company to buy back up to $600 million worth of its stock through open market or private transactions. This program replaces the prior two-year $800 million repurchase program, initiated in January 2022, during which Woodward repurchased around $572 million in stock.
These moves highlight the company’s robust financial position, cash generation capabilities, and its strategy of balancing capital allocation by returning cash to shareholders through dividends and stock repurchases.
Woodward, Inc. Price and Consensus
Woodward, Inc. price-consensus-chart | Woodward, Inc. Quote
Other Key Drivers
The company’s performance is benefiting from strengthening momentum across both the business segments — Aerospace and Industrial. Revenues from Woodward’s Aerospace business are expected to improve in the upcoming quarters, driven by strength in commercial markets as well as higher defense activity.
The Industrial segment is benefiting from robust demand for power generation, especially in Asia, and increasing requirements for backup power for data centers. Increasing investment in LNG infrastructure development and higher demand for alternative fuels across the marine industry are positives.
The segment is also likely to be aided by momentum in the global marine market brought on by higher utilization and rising shipbuilding rates. For fiscal 2024, management expects the Industrial segment’s sales growth between 4% and 6%.
Revenues for fiscal 2024 and 2025 are forecasted to rise 14.9% and 5.7% to $3.19 billion and $3.37 billion, respectively.
Woodward’s earnings per share (EPS) are expected to climb 16.7% and 15.1% on a year-over-year basis to $4.92 and $5.66 in fiscal 2024 and 2025, respectively. The Zacks Consensus Estimate for fiscal 2024 and 2025 EPS has improved 7.2% and 15%, respectively, in the past 60 days.
Currently, Woodward sports a Zacks Rank #1 (Strong Buy). Woodward’s shares have rallied 27.5% in the past year compared with 13.1% growth of the sub-industry.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , NETGEAR (NTGR - Free Report) and Watts Water Technologies (WTS - Free Report) . NETGEAR and Itron sport a Zacks Rank #1, while Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Itron’s 2023 EPS has inched up 3.2% in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 33.1% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the past 30 days.
NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have lost 29.5% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have soared 23.2% in the past year.