Woodward Earnings: Beats Wall Street Expectations

Woodward Inc. (NASDAQ:WWD) reported net income above Wall Street’s expectations for the fourth quarter. Woodward designs, manufactures, and services energy control systems and components for aircraft and industrial engines and turbines.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Woodward Inc. Earnings Cheat Sheet

Results: Net income for Woodward Inc. rose to $46.1 million (66 cents per share) vs. $41.7 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 10.6% from the year-earlier quarter.

Revenue: Rose 8.1% to $528.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Woodward Inc. beat the mean analyst estimate of 56 cents per share. It beat the average revenue estimate of $464.6 million.

Quoting Management: “Woodward finished the year with strong sales and earnings, while continuing our strategic investments in future growth,” said Thomas A. Gendron, Chairman and Chief Executive Officer. “Fourth quarter profitability improved as we recovered from the impacts of the unusual operational issues experienced in the third quarter.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 5% to $460.2 million in the third quarter. The figure rose 11.9% in the second quarter from the year earlier and climbed 11.7% in the first quarter from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the third quarter, it topped expectations with net income of 49 cents versus a mean estimate of net income of 45 cents per share.

Last quarter’s profit increase comes after net income dropped in the prevoius quarter. In the third quarter, net income declined 21.5% to $28.3 million.

The company’s cost of sales rose 7.9% from a year earlier. Last quarter, cost of sales was 69.4% of revenue, similar to the prior-year quarter.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the first quarter of the next fiscal year is now 45 cents per share, down from 56 cents. The average estimate for the fiscal year has remained at $1.93 per share.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

What Do Lockup Releases Mean for Facebook’s Stock?

Gold Bulls Refuse to Back Down

Can Manufacturing Curb Veteran Unemployment?