Woodward (WWD) to Post Q4 Earnings: Key Factors to Note
Woodward, Inc WWD is scheduled to report fourth-quarter fiscal 2023 results on Nov 16.
The Zacks Consensus Estimate for revenues is pegged at $761.5 million, suggesting growth of 19% from a year ago. The consensus estimate for earnings is pegged at $1.27 per share, indicating a year-over-year increase of 51.2%.
Woodward reported net earnings of $1.37 per share in third-quarter fiscal 2023, which beat the Zacks Consensus Estimate by 41.2%. In the year-ago quarter, the company reported adjusted net earnings of 64 cents.
Net sales moved up 30% year over year to $801 million. Higher sales in the Aerospace and Industrial segments resulted in this uptick. The top line surpassed the consensus estimate by 14%.
Woodward, Inc. Price and EPS Surprise
Woodward, Inc. price-eps-surprise | Woodward, Inc. Quote
Factors to Note
The company’s performance in the fiscal fourth quarter is likely to have benefited from strong demand in both business segments.
The Aerospace segment is expected to have been aided by higher commercial OEM and aftermarket sales. This is likely to have resulted from improving passenger traffic in all regions and fleet utilization along with higher OEM build rates.
The company expects the power generation market to pick up pace, especially in Asia, and backup power at data centers. The Industrial segment is likely to have gained from momentum in the global marine market due to increasing ship-building rates and higher utilization as well as continued global investment in LNG infrastructure development.
However, continued softness in defense OEM sales due to lower sale of guided weapons is a headwind. Unfavorable forex impact, inflation, component shortages and an overall challenging macro environment remain concerning. Though, in China, an increase in natural gas truck production was witnessed in fiscal third quarter, the company noted that future demand stays uncertain. This might affect the Industrial segment’s sales in the near term.
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 +4.55% and a Zacks Rank #4 (Sell). 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 some stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.
Walmart WMT has an Earnings ESP of +0.63% and a Zacks Rank #2. WMT is scheduled to report third-quarter fiscal 2024 earnings on Nov 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WMT’s to-be-reported quarter’s earnings and revenues is pegged at $1.51 per share and $159.2 billion, respectively. The stock has risen 20.1% in the past year.
The TJX Companies, Inc TJX has an Earnings ESP of +2.60% and a Zacks Rank #3. TJX is set to post third-quarter fiscal 2024 results on Nov 15.
The Zacks Consensus Estimate for TJX’s to-be-reported quarter’s earnings and revenues is pegged at 97 cents per share and $13.05 billion, respectively. Shares of TJX have gained 24.8% in the past year.
Ross Stores, Inc ROST has an Earnings ESP of +2.08% and carries a Zacks Rank #2. ROST is slated to release third-quarter 2023 numbers on Nov 16.
The Zacks Consensus Estimate for ROST’s to-be-reported quarter’s earnings and revenues is pegged at $1.21 per share and $4.83 billion, respectively. Shares of ROST have increased 30.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
