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Woodward, Inc. (WWD - Free Report) reported fourth-quarter fiscal 2024 adjusted net earnings per share (EPS) of $1.41, which jumped 6% year over year and beat the Zacks Consensus Estimate by 15.6%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Quarterly net sales increased 10% year over year to $855 million. Strong operational execution, along with continued momentum in end-market demand, led to this uptick. The top line beat the consensus estimate by 5.9%.
For the full year, WWD reported net sales of $3.3 billion, increasing 14% year over year and adjusted earnings per share surged 45% to $6.11.
Post this announcement, the stock is up 10.7% in pre-market trading session today. In the past year, shares of WWD have gained 54.2% compared with the sub-industry’s growth of 39.2%.
Image Source: Zacks Investment Research
WWD’s Segment Results
Aerospace: Net sales were $553 million, up 22% year over year driven by broad-based strength. Defense OEM and defense aftermarket sales were up 40% and 7%, respectively, year over year. Commercial OEM sales were up 16% due to robust demand amid supply-chain challenges. Commercial aftermarket sales increased 22% attributed to strong passenger traffic and higher aircraft utilization. We predicted the metric to be $511 million.
Segmental earnings were $106 million, up from $78 million a year ago. The increase in segment earnings was a result of price realization and strong volume growth partly offset by inflation.
Industrial: Net sales totaled $302 million, down 6% year over year. A 19% decline in transportation sales offset revenue growth from power generation (up 4%) and oil and gas (up 12%). We expected the metric to be $295.3 million.
The transportation segment was extensively affected by weakness in China’s on-highway natural gas trucks business. The business was impacted by low levels of production stemming from local economic troubles. Revenues were $22 million in the quarter under review. However, management expects further decline in the fiscal first quarter, with sales to be around $5 million.
Segmental earnings were $38 million, down from $54 million in the year-ago quarter. Industrial earnings were affected by lower volume and an unfavorable mix, which was partly offset by price realization.
Other Details of WWD
Gross margin was down 10 basis points year over year to 24.3%.
Total costs and expenses were $752.9 million, up 11% year over year. Adjusted EBITDA was $147 million compared with $139 million a year ago.
WWD’s Cash Flow & Liquidity
As of Sept. 30, 2024, Woodward had $282.3 million in cash and cash equivalents with $569.8 million of long-term debt (less the current portion).
For the fiscal year ended Sept. 30, 2024, WWD generated $439 million of net cash from operating activities, increasing from $309 million reported in the prior-year period.
Adjusted free cash flow was $348 million compared with $238 million in fiscal 2024. This rise in adjusted free cash flow was primarily due to increased earnings and improved working capital, partially offset by higher capital expenditures.
During fiscal 2024, WWD returned $449 million to its shareholders in the form of $58 million of dividends and $391 million of share repurchases. In the fourth quarter, it paid $15 million in dividends and $86 million toward share repurchases.
WWD’s Guidance
Driven by a strong demand environment and improving operational execution, WWD expects fiscal 2025 sales to be between $3.3 billion and $3.5 billion. Aerospace segment revenues are anticipated to increase in the range of 6-13%.
Management expects revenues from China on-highway natural gas trucks to be $40 million for the year, indicating a significant decline of $175 million from fiscal 2024. As a result, Industrial segment revenues are expected to decline in the band of 7-11%.
Adjusted free cash flow is anticipated to be between $350 million and $400 million while EPS is expected to be between $5.75 and $6.25.
Recent Performance of Other Companies in Tech Space
Seagate Technology Holdings plc (STX - Free Report) reported first-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, beating the Zacks Consensus Estimate by 6.8%. The company reported a non-GAAP loss of 22 cents per share in the year-ago quarter. This improvement in the bottom line was driven by a favorable mix shift to mass-capacity products and a better pricing environment. Non-GAAP revenues of $2.168 billion beat the Zacks Consensus Estimate by 2.4%. The figure increased 49% on a year-over-year basis and 15% sequentially. Shares of STX have gained 30.7% in the past year.
Badger Meter, Inc (BMI - Free Report) reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Quarterly net sales were $208.4 million, up 12% from $186.2 million in the year-ago quarter. This uptick resulted from continued strong yet normalizing demand for its tailorable water management solutions. Shares of BMI have gained 47.5% in the past year.
Iridium Communications (IRDM - Free Report) reported EPS of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of a cent per share in the prior-year quarter. Quarterly revenues were $212.8 million, up 8% from the year-ago level, driven by strength across all three segments. The Zacks Consensus Estimate was pegged at $205.7 million. Shares of IRDM have lost 19.8% in the past year.
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Woodward's Q4 Earnings & Revenues Beat Estimates, Stock Rises
Woodward, Inc. (WWD - Free Report) reported fourth-quarter fiscal 2024 adjusted net earnings per share (EPS) of $1.41, which jumped 6% year over year and beat the Zacks Consensus Estimate by 15.6%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Quarterly net sales increased 10% year over year to $855 million. Strong operational execution, along with continued momentum in end-market demand, led to this uptick. The top line beat the consensus estimate by 5.9%.
Woodward, Inc. Price, Consensus and EPS Surprise
Woodward, Inc. price-consensus-eps-surprise-chart | Woodward, Inc. Quote
For the full year, WWD reported net sales of $3.3 billion, increasing 14% year over year and adjusted earnings per share surged 45% to $6.11.
Post this announcement, the stock is up 10.7% in pre-market trading session today. In the past year, shares of WWD have gained 54.2% compared with the sub-industry’s growth of 39.2%.
Image Source: Zacks Investment Research
WWD’s Segment Results
Aerospace: Net sales were $553 million, up 22% year over year driven by broad-based strength. Defense OEM and defense aftermarket sales were up 40% and 7%, respectively, year over year. Commercial OEM sales were up 16% due to robust demand amid supply-chain challenges. Commercial aftermarket sales increased 22% attributed to strong passenger traffic and higher aircraft utilization. We predicted the metric to be $511 million.
Segmental earnings were $106 million, up from $78 million a year ago. The increase in segment earnings was a result of price realization and strong volume growth partly offset by inflation.
Industrial: Net sales totaled $302 million, down 6% year over year. A 19% decline in transportation sales offset revenue growth from power generation (up 4%) and oil and gas (up 12%). We expected the metric to be $295.3 million.
The transportation segment was extensively affected by weakness in China’s on-highway natural gas trucks business. The business was impacted by low levels of production stemming from local economic troubles. Revenues were $22 million in the quarter under review. However, management expects further decline in the fiscal first quarter, with sales to be around $5 million.
Segmental earnings were $38 million, down from $54 million in the year-ago quarter. Industrial earnings were affected by lower volume and an unfavorable mix, which was partly offset by price realization.
Other Details of WWD
Gross margin was down 10 basis points year over year to 24.3%.
Total costs and expenses were $752.9 million, up 11% year over year. Adjusted EBITDA was $147 million compared with $139 million a year ago.
WWD’s Cash Flow & Liquidity
As of Sept. 30, 2024, Woodward had $282.3 million in cash and cash equivalents with $569.8 million of long-term debt (less the current portion).
For the fiscal year ended Sept. 30, 2024, WWD generated $439 million of net cash from operating activities, increasing from $309 million reported in the prior-year period.
Adjusted free cash flow was $348 million compared with $238 million in fiscal 2024. This rise in adjusted free cash flow was primarily due to increased earnings and improved working capital, partially offset by higher capital expenditures.
During fiscal 2024, WWD returned $449 million to its shareholders in the form of $58 million of dividends and $391 million of share repurchases. In the fourth quarter, it paid $15 million in dividends and $86 million toward share repurchases.
WWD’s Guidance
Driven by a strong demand environment and improving operational execution, WWD expects fiscal 2025 sales to be between $3.3 billion and $3.5 billion. Aerospace segment revenues are anticipated to increase in the range of 6-13%.
Management expects revenues from China on-highway natural gas trucks to be $40 million for the year, indicating a significant decline of $175 million from fiscal 2024. As a result, Industrial segment revenues are expected to decline in the band of 7-11%.
Adjusted free cash flow is anticipated to be between $350 million and $400 million while EPS is expected to be between $5.75 and $6.25.
WWD’s Zacks Rank
Woodward currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Performance of Other Companies in Tech Space
Seagate Technology Holdings plc (STX - Free Report) reported first-quarter fiscal 2025 non-GAAP earnings of $1.58 per share, beating the Zacks Consensus Estimate by 6.8%. The company reported a non-GAAP loss of 22 cents per share in the year-ago quarter. This improvement in the bottom line was driven by a favorable mix shift to mass-capacity products and a better pricing environment. Non-GAAP revenues of $2.168 billion beat the Zacks Consensus Estimate by 2.4%. The figure increased 49% on a year-over-year basis and 15% sequentially. Shares of STX have gained 30.7% in the past year.
Badger Meter, Inc (BMI - Free Report) reported EPS of $1.08 for the third quarter of 2024, beating the Zacks Consensus Estimate by 5.9%. Quarterly net sales were $208.4 million, up 12% from $186.2 million in the year-ago quarter. This uptick resulted from continued strong yet normalizing demand for its tailorable water management solutions. Shares of BMI have gained 47.5% in the past year.
Iridium Communications (IRDM - Free Report) reported EPS of 21 cents for the third quarter of 2024, beating the Zacks Consensus Estimate by 5%. The company incurred a loss of a cent per share in the prior-year quarter. Quarterly revenues were $212.8 million, up 8% from the year-ago level, driven by strength across all three segments. The Zacks Consensus Estimate was pegged at $205.7 million. Shares of IRDM have lost 19.8% in the past year.