How the Wheels Came Off Woodward's Bus
Woodward (NAS: WWD) reported earnings on Jan. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Woodward missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share increased significantly.
Margins grew across the board.
Woodward booked revenue of $408 million. The seven analysts polled by S&P Capital IQ foresaw sales of $422 million. Sales were 12% higher than the prior-year quarter's $365 million
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.40. The eight earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS of $0.40 for Q1 were 25% higher than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 30.3%, 180 basis points better than the prior-year quarter. Operating margin was 11.4%, 70 basis points better than the prior-year quarter. Net margin was 7.0%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $470 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $1.9 billion. The average EPS estimate is $2.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 549 members out of 562 rating the stock outperform, and 13 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give Woodward a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Woodward is buy, with an average price target of $47.57.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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