Woodward Inc First Quarter Earnings Sneak Peek

Woodward Inc (NASDAQ:WWD) will unveil its latest earnings on Tuesday, January 22, 2013. Woodward designs, manufactures, and services energy control systems and components for aircraft and industrial engines and turbines.

Woodward Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 46 cents per share, a rise of 15% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 56 cents. Between one and three months ago, the average estimate moved down. It has risen from 45 cents during the last month. Analysts are projecting profit to rise by 6.2% versus last year to $2.23.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of 66 cents per share, and the previous quarter, it had net income of 49 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 10.6% to $46.1 million (65 cents a share) from $41.7 million (60 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.1% to $528.7 million from $489.3 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 6.7% in revenue from the year-earlier quarter to $435.3 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.23 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 3.61 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 18.5% to $279.9 million while assets rose 6% to $903.5 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.7% in the first quarter of the last fiscal year, 11.9% in the second quarter of the last fiscal year and 5% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 9.2% for the last four quarters.

Analyst Ratings: There are five out of eight analysts surveyed (62.5%) rating Woodward a buy.

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