Woodward Inc. Earnings: Margins Expand with Strong Revenues, Profit Increases

Woodward Inc. (NASDAQ:WWD) reported its results for the first quarter. Woodward 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 First Quarter.

Results: Net income for Woodward Inc. rose to $28.4 million (40 cents per share) vs. $22.4 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 26.9% from the year earlier quarter.

Revenue: Rose 11.7% to $407.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: WWD fell short of the mean analyst estimate of 45 cents per share. It fell short of the average revenue estimate of $424.9 million.

Quoting Management: “Our sales and earnings growth this quarter, coupled with our order volume for the remainder of the year, supports our full year expectations,” said Thomas A. Gendron, Chairman and Chief Executive Officer. “Sales and earnings growth this quarter benefitted from progress on key strategic initiatives.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 27.6% and in the third quarter of the last fiscal year, the figure rose 13.6%.

Revenue has risen the past four quarters. Revenue increased 18.8% to $489.3 million in the fourth quarter of the last fiscal year. The figure rose 23% in the third quarter of the last fiscal year from the year earlier and climbed 19.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 6 cents, and in the third quarter of the last fiscal year, it was ahead by one cent.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the second quarter is now 55 cents per share, down from 56 cents. For the fiscal year, the average estimate has moved up from $2.25 a share to $2.29 over the last ninety days.

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) and Generac Holdings Inc. (NYSE:GNRC).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com