Woodward (WWD) to Post Q1 Earnings: Key Factors to Note
Woodward, Inc WWD is scheduled to report first-quarter fiscal 2024 results on Jan 29.
The Zacks Consensus Estimate for revenues is pegged at $739.3 million, suggesting growth of 19.5% from a year ago. The consensus estimate for earnings is pegged at $1.10 per share, indicating an increase of 124.5% from the prior-year levels.
WWD’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters, while missing in the remaining quarter. The average surprise stands at 14.7%.
Woodward, Inc. Price and EPS Surprise
Woodward, Inc. price-eps-surprise | Woodward, Inc. Quote
Factors to Note
The company’s performance in the fiscal first quarter is likely to have benefited from strong demand in both business segments. Also, strategic investments made to strengthen the supply chain are expected to have been other tailwinds.
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.
The Industrial segment is likely to have gained from solid demand for power generation, especially in Asia, and continued requirement for backup power for data centers. Increasing investment in LNG infrastructure development and higher demand for alternative fuels across the marine industry are positives. The Industrial segment is also likely to have been aided by momentum in the global marine market brought on by higher utilization and rising shipbuilding rates.
We expect revenues from the Aerospace and Industrial segments to be up 15.5% and 20.4% to $456.9 million and $268.5 million, respectively, in the fiscal first quarter.
However, softness in defense OEM sales due to lower guided weapons sales is a major headwind. Low visibility into the China on-highway natural gas truck market, global macroeconomic weakness, forex volatility and rising costs are added concerns.
What Our Model Says
Our proven model does not conclusively predict 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 -2.52% and a Zacks Rank #1. 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.
Apple AAPL has an Earnings ESP of +2.13% and carries a Zacks Rank #1 at present. Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $2.09 per share and $117.5 billion, respectively. Shares of AAPL have gained 37.4% in the past year.
PTC Inc PTC has an Earnings ESP of +2.12% and presently carries a Zacks Rank #2. PTC is slated to release quarterly numbers on Jan 31.
The Zacks Consensus Estimate for PTC’s to-be-reported quarter’s revenues and earnings is pegged at $538.6 million and 98 cents per share, respectively. Shares of PTC have rallied 33.4% in the past year.
American Airlines Group Inc AAL has an Earnings ESP of +19.74% and a Zacks Rank #2 at present. AAL will release results on Jan 25.
The Zacks Consensus Estimate for American Airline’s to-be-reported quarter’s earnings and revenues is pegged at 6 cents per share and $13 billion, respectively. Shares of AAL have lost 13.7% of their value in the past year.
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