Results: Woodward, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
As you might know, Woodward, Inc. (NASDAQ:WWD) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 4.2% to hit US$787m. Woodward also reported a statutory profit of US$1.46, which was an impressive 27% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Woodward
Taking into account the latest results, the most recent consensus for Woodward from nine analysts is for revenues of US$3.25b in 2024. If met, it would imply an okay 5.4% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 9.2% to US$5.32. In the lead-up to this report, the analysts had been modelling revenues of US$3.21b and earnings per share (EPS) of US$5.06 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$157, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Woodward at US$177 per share, while the most bearish prices it at US$134. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Woodward's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.2% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.5% per year. So while Woodward's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Woodward following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Woodward analysts - going out to 2026, and you can see them free on our platform here.
You can also view our analysis of Woodward's balance sheet, and whether we think Woodward is carrying too much debt, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
