Woodward Beats Q4 Earnings Estimates, Gives FY16 View
Woodward, Inc. WWD reported fiscal fourth-quarter 2015 (ending Sep 30, 2015) earnings of 77 cents per share, beating the Zacks Consensus Estimate of 75 cents by 2.7%. Earnings were, however, on par with the year-ago level.
For fiscal 2015, the company reported earnings of $2.75 per share, up 12.2% year over year.
Woodward Inc. (WWD) - Earnings Surprise | FindTheCompany
Total Revenue
The company’s net sales of $562.6 million in the reported quarter surpassed the Zacks Consensus Estimate of $540 million by 4.2%. Revenues decreased 0.5% from the year-ago figure of $565.4 million mainly due to headwinds related to foreign exchange rates and Asian market softness.
In fiscal 2015, net sales were $2,038.3 million, up from $2,001.2 million a year ago.
Operational Update
Woodward’s total cost and expenses increased 0.7% year over year to $493.9 million in the reported quarter. Costs were up primarily due to higher cost of goods sold, interest expenses as well as other expenses.
In the fourth quarter of fiscal 2015, interest expenses were $7.5 million compared with $4.6 million a year ago.
Quarterly Segmental Performance
Aerospace: Segment revenues increased 5.3% year over year to $335.2 million, driven by higher commercial aircraft programs and solid commercial aftermarket activity.
Earnings came in at $60 million, up 5.2% year over year due to higher sales volume.
Energy: Segment revenues were $227.4 million, down 8% year over year owing to lower sales in Asian markets, partially offset by strength in wind and gas turbine markets.
Earnings also declined 15.9% year over year to $29.5 million primarily due to unfavorable foreign currency exchange rate fluctuations.
Financial Condition
Woodward’s cash and cash equivalents as of Sep 30, 2015, were $82.2 million compared with $115.3 million as of Sep 30, 2014.
Long-term debt (excluding current portion) was $850 million as of Sep 30, 2015, up from $710 million as of Sep 30, 2014.
Free cash inflow was $24.4 million in the fiscal fourth quarter versus free cash outflow of $18.4 million a year ago. In fiscal 2015, free cash flow was $0.8 million versus $61 million a year ago.
In fiscal 2015, net cash generated from operating activities was $287.4 million compared with $268.1 million in the prior fiscal.
Guidance
The company expects weakness in the Asian markets to continue to hit its Energy segment. However, it expects continued growth at the Aerospace segment. Woodward expects net sales for fiscal 2016 to increase 1% to 2% year over year.
Earnings are expected to be between $2.75 and $2.95 per share for fiscal 2016.
Peer Releases
Watts Water Technologies, Inc. WTS posted adjusted earnings of 67 cents per share in the quarter, which declined 4% year over year. Earnings, however, beat the Zacks Consensus Estimate of 63 cents.
Badger Meter Inc.’s BMI quarterly earnings per share declined 18% year over year to 58 cents and were also short of the Zacks Consensus Estimate of 66 cents, a negative earnings surprise of 12.12%.
Roper Technologies, Inc. ROP reported third-quarter 2015 adjusted earnings of $1.61 per share, which rose 4% year over year and beat the Zacks Consensus Estimate of $1.57.
Zacks Rank
Woodward Inc. currently carries a Zacks Rank #3 (Hold).
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