In This Article:
Woodward, Inc. WWD is scheduled to report second-quarter fiscal 2025 results on April 28.
The Zacks Consensus Estimate for revenues is pegged at $830.3 million, which implies a decline of 0.6% from the year-ago reported number. The consensus mark for earnings is pegged at $1.44 per share, indicating a year-over-year fall of 11.1%.
WWD’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 17.9%.
Woodward’s shares have gained 20.2% compared with the Zacks Aerospace - Defense Equipment industry’s growth of 19.5% in the past year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image Source: Zacks Investment Research
Factors to Note Ahead of WWD’s Q2 Results
WWD’s performance in the fiscal second quarter is likely to have been powered by growth in the Aerospace segment, driven by strength in the commercial aftermarket as well as higher defense activity. Commercial aftermarket sales are likely to have been aided by robust passenger traffic and higher legacy aircraft utilization.
Woodward’s Industrial business segment is expected to have gained from solid demand for power generation and continued requirement for primary and backup power for data centers. Higher investment in gas-powered generation to support grid stability is another tailwind. Increasing demand for alternative fuels across the marine industry, as well as momentum in the global marine market brought on by higher utilization, bodes well.
Woodward, Inc. Price and EPS Surprise
Woodward, Inc. price-eps-surprise | Woodward, Inc. Quote
Volatile China on-highway natural gas truck market, global macroeconomic weakness and rising costs are concerns.
Sales for on-highway natural gas trucks in China were $10 million in the last reported quarter due to local economic challenges and weak demand. Management continues to expect full-year revenues from China on-highway natural-gas trucks to reach only $40 million, implying a sharp decline from fiscal 2024. Given the ongoing economic headwinds and reduced order activity, sales from this business might have been hurt in the second quarter as well, putting pressure on overall segment results. Moreover, persistent supply-chain challenges in the Aerospace segment remain a concern.
We expect revenues from the Aerospace segment to be up 5.6% to $525.2 million and the Industrial segment to decline 11.4% to $299.4 million for the fiscal second quarter.
What Our Model Says for WWD
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.