Yahoo Finance Here's How Woodward (WWD) is Placed Just Ahead of Q2 Earnings
Woodward, Inc WWD is scheduled to report second-quarter fiscal 2024 results on Apr 29. We are anticipating a robust performance in strong end-market demand across most of the verticals.
Let’s delve deeper.
The company’s performance in the fiscal second quarter is likely to have benefited from solid momentum across the Aerospace and Industrial business segments.
Higher commercial OEM and commercial aftermarket sales due to improving passenger traffic and fleet utilization are likely to have driven revenues in the Aerospace segment. The Aerospace segment is likely to have gained from higher defense activity owing to rising geopolitical developments and government spending proposals.
Woodward, Inc. Price and Consensus
Woodward, Inc. price-consensus-chart | Woodward, Inc. Quote
The Industrial segment is likely to have gained from solid demand for power generation, especially in Asia and the Middle East, and continued requirement for backup power for data centers. In transportation, the global marine market is likely to have gained momentum owing to elevated ship rates and high utilization rates. Also, the company added that the demand for alternative fuels across the marine industry continues to increase.
In the last reported quarter, industrial net sales totaled $326 million, up 46% year over year due to higher demand across all markets, especially on-highway natural gas truck business in China.
We expect revenues from the Aerospace and Industrial segments to be up 14.2% and 4.8% to $498.9 million and $294.7 million, respectively, in the fiscal second quarter.
Apart from the positives, uncertainty in China’s on-highway natural gas truck market, global macroeconomic weakness and rising costs are likely to have affected the top line. Even though on-highway natural gas truck sales rose dramatically in the fiscal first quarter, management does not anticipate larger sales in the fiscal second quarter since demand trends point to a return to the $50 million peak levels.
Trend in Estimate Revision
The consensus estimate for earnings is pegged at $1.28 per share, indicating an increase of 26.7% from the prior-year levels. The estimated figure moved up from $1.22 per share in the past 90 days.
The Zacks Consensus Estimate for revenues is pegged at $802.4 million, suggesting growth of 11.7% from a year ago. WWD’s earnings outpaced the Zacks Consensus Estimate in all the last four quarters, the average surprise stands at 27.2%
YTD Price Performance
Woodward’s shares have gained 10.5% compared with the sub-industry’s growth of 3% and the S&P 500 Index’s rally of 4.8% in the year-to-date period. Also, the stock is down 6.6% from its 52-week high level of $160.79, making it relatively affordable for investors.
Image Source: Zacks Investment Research
The company’s forward price-to-earnings ratio stands at 28.13X, which is lower than the industry average of 34.60X. This suggests that the stock is more affordable than its peers, making it a relatively attractive option for investors.
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 +4.41% and a Zacks Rank #3 You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
IMAX Corporation IMAX has an Earnings ESP of +60.72% and currently carries a Zacks Rank #3. IMAX is scheduled to report quarterly earnings on Apr 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IMAX’s to-be-reported quarter’s earnings and revenues is pegged at 9 cents per share and $76.8 million, respectively. Shares of IMAX have lost 15.3% in the past year.
Chegg CHGG has an Earnings ESP of +3.55% and currently carries a Zacks Rank #2. CHGG is scheduled to report quarterly earnings on Apr 29.
The Zacks Consensus Estimate for CHGG’s to-be-reported quarter’s earnings and revenues is pegged at 24 cents per share and $174.1 million, respectively. Shares of CHGG have lost 62.2% in the past year.
Exxon Mobil XOM has an Earnings ESP of +0.13% and currently carries a Zacks Rank #3. XOM is scheduled to report quarterly earnings on Apr 26.
The Zacks Consensus Estimate for XOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.19 per share and $86.6 million, respectively. Shares of XOM have gained 7.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
IMAX Corporation (IMAX) : Free Stock Analysis Report
Chegg, Inc. (CHGG) : Free Stock Analysis Report
