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Woodward (WWD) Beats Earnings and Revenue Estimates in Q3
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Woodward, Inc. (WWD - Free Report) reported third-quarter fiscal 2017 earnings of 85 cents per share, beating the Zacks Consensus Estimate of 76 cents by 11.8%. Earnings also increased 4.9% from the prior-year figure of 81 cents.
Total Revenue
The company’s quarterly net sales of $548.6 million surpassed the Zacks Consensus Estimate of $533 million by 2.9%. Revenues also increased 8.1% from the year-ago figure of $507.7 million, mainly on account of growth in sales witnessed in the Aerospace segment.
Operational Update
Woodward’s total costs and expenses increased 8% year over year to $479.9 million in the reported quarter. The upside was driven by higher cost of goods sold, selling, general, and administrative expenses, research and development expenses as well as interest expenses.
Quarterly Segmental Performance
Aerospace: Segment revenues were up 15.4% year over year to $356 million, primarily driven by higher aftermarket sales in commercial markets and launch of next generation aircraft.
Earnings came in at $67.2 million, up 16.4% on the back of higher sales volume.
Industrial: Segment revenues totaled $192.6 million, down 3.2% year over year due to continued weakness in sales related to industrial gas and wind turbines.
Again, earnings declined 5% to $20.9 million primarily due to lower sales volume.
Woodward’s cash and cash equivalents as of Jun 30, 2017 were $89.0 million, compared with $81.1 million as of Sep 30, 2016.
Long-term debt (excluding current portion) was $574.2 million as of Jun 30, 2017, down from $577.2 million as of Sep 30, 2016.
Free cash inflow was $31.8 million in the fiscal third quarter, compared with 19.1 million in the year-ago quarter.
In the first nine months of fiscal 2017, net cash generated from operating activities was $183.8 million, compared with $362.5 million in the prior-year quarter.
In the first nine months of fiscal 2017, payments for property, plant and equipment were $65.1 million, compared with $128.6 million in the year-ago period.
Fiscal 2017 Guidance
Net sales are expected to be about $2.1 billion. The company now expects earnings in the band of $3.05–$3.15 per share, compared with the previous projection of $2.95–$3.25.
Upcoming Peer Releases
Watts Water Technologies, Inc. (WTS - Free Report) is slated to release its quarterly numbers on Aug 2. The Zacks Consensus Estimate for earnings is pegged at 80 cents.
Nanometrics Incorporated is scheduled to release its quarterly numbers on Aug 1. The Zacks Consensus Estimate for earnings is pegged at 31 cents.
Allied Motion Technologies Inc. is expected to release its quarterly numbers on Aug 2. The Zacks Consensus Estimate for earnings is pegged at 31 cents.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
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Woodward (WWD) Beats Earnings and Revenue Estimates in Q3
Woodward, Inc. (WWD - Free Report) reported third-quarter fiscal 2017 earnings of 85 cents per share, beating the Zacks Consensus Estimate of 76 cents by 11.8%. Earnings also increased 4.9% from the prior-year figure of 81 cents.
Total Revenue
The company’s quarterly net sales of $548.6 million surpassed the Zacks Consensus Estimate of $533 million by 2.9%. Revenues also increased 8.1% from the year-ago figure of $507.7 million, mainly on account of growth in sales witnessed in the Aerospace segment.
Operational Update
Woodward’s total costs and expenses increased 8% year over year to $479.9 million in the reported quarter. The upside was driven by higher cost of goods sold, selling, general, and administrative expenses, research and development expenses as well as interest expenses.
Quarterly Segmental Performance
Aerospace: Segment revenues were up 15.4% year over year to $356 million, primarily driven by higher aftermarket sales in commercial markets and launch of next generation aircraft.
Earnings came in at $67.2 million, up 16.4% on the back of higher sales volume.
Industrial: Segment revenues totaled $192.6 million, down 3.2% year over year due to continued weakness in sales related to industrial gas and wind turbines.
Again, earnings declined 5% to $20.9 million primarily due to lower sales volume.
Woodward, Inc. Price, Consensus and EPS Surprise
Woodward, Inc. Price, Consensus and EPS Surprise | Woodward, Inc. Quote
Financial Condition
Woodward’s cash and cash equivalents as of Jun 30, 2017 were $89.0 million, compared with $81.1 million as of Sep 30, 2016.
Long-term debt (excluding current portion) was $574.2 million as of Jun 30, 2017, down from $577.2 million as of Sep 30, 2016.
Free cash inflow was $31.8 million in the fiscal third quarter, compared with 19.1 million in the year-ago quarter.
In the first nine months of fiscal 2017, net cash generated from operating activities was $183.8 million, compared with $362.5 million in the prior-year quarter.
In the first nine months of fiscal 2017, payments for property, plant and equipment were $65.1 million, compared with $128.6 million in the year-ago period.
Fiscal 2017 Guidance
Net sales are expected to be about $2.1 billion. The company now expects earnings in the band of $3.05–$3.15 per share, compared with the previous projection of $2.95–$3.25.
Upcoming Peer Releases
Watts Water Technologies, Inc. (WTS - Free Report) is slated to release its quarterly numbers on Aug 2. The Zacks Consensus Estimate for earnings is pegged at 80 cents.
Nanometrics Incorporated is scheduled to release its quarterly numbers on Aug 1. The Zacks Consensus Estimate for earnings is pegged at 31 cents.
Allied Motion Technologies Inc. is expected to release its quarterly numbers on Aug 2. The Zacks Consensus Estimate for earnings is pegged at 31 cents.
Zacks Rank
Woodward currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>