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Woodward (WWD) Set to Post Q3 Earnings: Key Factors to Note
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Woodward, Inc (WWD - Free Report) is scheduled to report third-quarter fiscal 2024 results on Jul 29, after the closing bell.
The Zacks Consensus Estimate for revenues is pegged at $851 million, which suggests growth of 6.3% from the year-ago reported number. The consensus mark for earnings is pegged at $1.47 per share, indicating a year-over-year increase of 7.3%.
WWD’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.1%.
Woodward’s shares have gained 31.7% compared with the sub-industry’s growth of 14.9% and the S&P 500 Index’s rally of 13.4% in the year-to-date period. Also, the stock is down 4.8% from its 52-week high level of $188.35.
Image Source: Zacks Investment Research
Factors at Play
The company’s performance in the fiscal third quarter is likely to have been powered by growth in both the Aerospace and Industrial segments, reflecting its strategic positioning coupled with operational excellence.
Momentum in commercial OEM and commercial aftermarket sales driven by increased passenger traffic, aircraft utilization and price realization is likely to have cushioned the Aerospace segment performance.
Defense OEM sales are likely to have gained from higher ground vehicle sales amid a downtrend in guided vehicles. Defense aftermarket sales are benefiting from supply-chain stabilization and higher output.
The Industrial segment is anticipated to have benefited from increasing demand for power generation, notably in Asia, and the continued requirement for backup power for data centers. Growing demand for natural gas engines, especially on-highway natural gas truck business in China, is an additional tailwind. Higher demand for alternative fuels across the marine industry, as well as momentum in the global marine market owing to rapid utilization and shipbuilding rates, are other growth drivers.
We expect revenues from the Aerospace segment to be up 7.3% to $515.7 million and the Industrial segment to be at break even with $320.2 million, respectively, for the fiscal third quarter.
Uncertainty in China’s on-highway natural gas truck market, global macroeconomic headwinds and rising costs remain concerning. On-highway natural gas truck sales in the fiscal second quarter were up sequentially. Management does not anticipate larger sales in the fiscal third quarter due to the dynamic market environment. For the fiscal third quarter, it estimates China on-highway revenues between $35 million and $40 million.
Also, the recent pause by the U.S. government on further LNG export approvals has made the investment scenario of the LNG development market uncertain.
Our proven model predicts an earnings beat for WWD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
WWD has an Earnings ESP of +0.29% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are some other stocks you may consider, as our proven model shows that these, too, have the right mix of elements to beat estimates this time around.
The Zacks Consensus Estimate for PINS’s to-be-reported quarter’s EPS and revenues is pegged at 28 cents per share and $847.8 million, respectively. Shares of PINS have gained 41% in the past year.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s EPS and revenues is pegged at 95 cents per share and $207.6 million, respectively. Shares of SIMO have gained 30.8% in the past year.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s EPS and revenues is pegged at $1.94 and $1.64 billion, respectively. Shares of ANET have gained 95.1% in the past year.
Image: Bigstock
Woodward (WWD) Set to Post Q3 Earnings: Key Factors to Note
Woodward, Inc (WWD - Free Report) is scheduled to report third-quarter fiscal 2024 results on Jul 29, after the closing bell.
The Zacks Consensus Estimate for revenues is pegged at $851 million, which suggests growth of 6.3% from the year-ago reported number. The consensus mark for earnings is pegged at $1.47 per share, indicating a year-over-year increase of 7.3%.
WWD’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 26.1%.
Woodward’s shares have gained 31.7% compared with the sub-industry’s growth of 14.9% and the S&P 500 Index’s rally of 13.4% in the year-to-date period. Also, the stock is down 4.8% from its 52-week high level of $188.35.
Image Source: Zacks Investment Research
Factors at Play
The company’s performance in the fiscal third quarter is likely to have been powered by growth in both the Aerospace and Industrial segments, reflecting its strategic positioning coupled with operational excellence.
Momentum in commercial OEM and commercial aftermarket sales driven by increased passenger traffic, aircraft utilization and price realization is likely to have cushioned the Aerospace segment performance.
Defense OEM sales are likely to have gained from higher ground vehicle sales amid a downtrend in guided vehicles. Defense aftermarket sales are benefiting from supply-chain stabilization and higher output.
The Industrial segment is anticipated to have benefited from increasing demand for power generation, notably in Asia, and the continued requirement for backup power for data centers. Growing demand for natural gas engines, especially on-highway natural gas truck business in China, is an additional tailwind. Higher demand for alternative fuels across the marine industry, as well as momentum in the global marine market owing to rapid utilization and shipbuilding rates, are other growth drivers.
We expect revenues from the Aerospace segment to be up 7.3% to $515.7 million and the Industrial segment to be at break even with $320.2 million, respectively, for the fiscal third quarter.
Uncertainty in China’s on-highway natural gas truck market, global macroeconomic headwinds and rising costs remain concerning. On-highway natural gas truck sales in the fiscal second quarter were up sequentially. Management does not anticipate larger sales in the fiscal third quarter due to the dynamic market environment. For the fiscal third quarter, it estimates China on-highway revenues between $35 million and $40 million.
Also, the recent pause by the U.S. government on further LNG export approvals has made the investment scenario of the LNG development market uncertain.
Woodward, Inc. Price and EPS Surprise
Woodward, Inc. price-eps-surprise | Woodward, Inc. Quote
What Our Model Says
Our proven model predicts an earnings beat for WWD this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
WWD has an Earnings ESP of +0.29% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are some other stocks you may consider, as our proven model shows that these, too, have the right mix of elements to beat estimates this time around.
Pinterest (PINS - Free Report) is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PINS’s to-be-reported quarter’s EPS and revenues is pegged at 28 cents per share and $847.8 million, respectively. Shares of PINS have gained 41% in the past year.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s EPS and revenues is pegged at 95 cents per share and $207.6 million, respectively. Shares of SIMO have gained 30.8% in the past year.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s EPS and revenues is pegged at $1.94 and $1.64 billion, respectively. Shares of ANET have gained 95.1% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.