Woodward Third Quarter Earnings Sneak Peek

Woodward Inc (NASDAQ:WWD) will unveil its latest earnings on Monday, July 23, 2012. 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 estimate of analysts is for profit of 40 cents per share, a decline of 21.6% from the company’s actual earnings in the year-ago quarter. During the past three months, the average estimate has moved down from 61 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 60 cents during the last month. For the year, analysts are projecting net income of $1.95 per share, a rise of 3.2% from last year.

Past Earnings Performance: Last quarter, the company saw profit of 55 cents per share versus a mean estimate of net income of 55 cents per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the second quarter, profit rose 20.8% to $38.8 million (55 cents a share) from $32.1 million (46 cents a share) the year earlier, meeting analyst expectations. Revenue rose 11.9% to $468.8 million from $418.9 million.

Stock Price Performance: Between April 20, 2012 and July 17, 2012, the stock price fell $6.93 (-17%), from $40.88 to $33.95. The stock price saw one of its best stretches over the last year between June 26, 2012 and July 5, 2012, when shares rose for seven straight days, increasing 10.1% (+$3.71) over that span. It saw one of its worst periods between July 22, 2011 and August 8, 2011 when shares fell for 12 straight days, dropping 29.8% (-$10.97) over that span.

Wall St. Revenue Expectations: On average, analysts predict $468.7 million in revenue this quarter, a rise of 6.9% from the year-ago quarter. Analysts are forecasting total revenue of $1.88 billion for the year, a rise of 9.9% from last year’s revenue of $1.71 billion.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 16.4% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 27.6% in the fourth quarter of the last fiscal year and 26.9% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.37 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 3.57 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 16.6% to $255.9 million while assets rose 10.2% to $863 million.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

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

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