Woodward, Inc. Earnings Cheat Sheet: Revenue Increase Helps Margin, Net Income Climbs

Woodward, Inc. (NASDAQ:WWD) reported higher profit for the third quarter as revenue showed growth. Woodward Inc.designs, manufactures, and services energy control systems and components for aircraft and industrial engines and turbines.

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Woodward Earnings Cheat Sheet for the Third Quarter

Results: Net income for Woodward, Inc. rose to $36.1 million (51 cents per share) vs. $31.7 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 13.6% from the year earlier quarter.

Revenue: Rose 23% to $438.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WWD beat the mean analyst estimate of 50 cents per share. It beat the average revenue estimate of $420.9 million.

Quoting Management: “Woodward’s record quarter of sales and earnings was driven through broad-based growth and application of our energy control solutions strategy,” said Thomas A. Gendron, Chairman and Chief Executive Officer. “We expect to build on this momentum by continuing to aggressively pursue our organic growth opportunities.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 33.3% and in the first quarter, the figure rose 0.2%.

Revenue has risen the past four quarters. Revenue increased 19.9% to $418.9 million in the second quarter. The figure rose 7.6% in the first quarter from the year earlier and climbed 13% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 46 cents versus a mean estimate of net income of 43 cents per share.

Gross margins grew 0.7 percentage point to 30.6%. The growth seemed to be driven by increased revenue, as the figure rose 23% from the year earlier quarter while costs rose 21.8%.

Competitors to Watch: Parker-Hannifin Corp. (NYSE:PH), General Electric Company (NYSE:GE), United Technologies Corp. (NYSE:UTX), Honeywell Intl. Inc. (NYSE:HON), Broadwind Energy Inc. (NASDAQ:BWEN), Ocean Power Tech., Inc. (NASDAQ:OPTT), Capstone Turbine Corp. (NASDAQ:CPST), Goodrich Corporation (NYSE:GR), Generac Holdings Inc. (NYSE:GNRC), and Hydrogen Engine Center, Inc. (HYEG).

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(Source: Xignite Financials)