Woodward, Inc WWD is scheduled to report first-quarter fiscal 2025 outcomes on Feb. 3.
Keep up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for revenues is pegged at $778.5 million, which suggests a decline of 1.1% from the year-ago reported quantity. The consensus mark for earnings is pegged at $1.14 per share, indicating a year-over-year decline of 21.4%.
WWD’s earnings outpaced the Zacks Consensus Estimate in every of the trailing 4 quarters, with the common shock being 21.2%. Woodward’s shares have gained 34.9% in contrast with the sub-industry’s development of 34.1% prior to now 12 months.
Picture Supply: Zacks Funding Analysis
Elements to Be aware Forward of WWD’s Q1 Outcomes
WWD’s efficiency within the fiscal first quarter is prone to have been powered by development within the Aerospace section, indicating its strategic positioning coupled with operational excellence.
Greater protection exercise and momentum in business OEM and business aftermarket gross sales, pushed by elevated passenger visitors, plane utilization and worth realization, are prone to have cushioned the section’s efficiency. Protection aftermarket gross sales have been benefiting from supply-chain stabilization. Protection OEM gross sales are prone to have been pushed by increased guided weapons and floor automobiles gross sales.
The Industrial section is anticipated to have benefited from growing demand for energy era and the continued requirement for backup energy for information facilities. Greater energy demand to help grid stability is a tailwind. Growing demand for different fuels throughout the marine trade, in addition to momentum within the international marine market introduced on by increased utilization and rising shipbuilding charges, bodes effectively.
Inside oil and gasoline, an encouraging funding outlook in China, Center East and India’s refining and petrochemical actions are prone to have acted as one other tailwind.
Risky China on-highway pure gasoline truck market, international macroeconomic weak point and rising prices are issues.
Woodward, Inc. Worth and EPS Shock
Woodward, Inc. price-eps-surprise | Woodward, Inc. Quote
Weaker demand for heavy-duty vehicles in China within the final reported quarter led to increased stock ranges at prospects. This brought about a decline in China on-highway orders for the fiscal fourth quarter. Gross sales for on-highway pure gasoline vehicles in China have been $22 million within the fiscal fourth quarter.
Administration expects an additional decline within the fiscal first quarter of 2025, as a consequence of weak native financial well being and a narrowing gasoline worth unfold. Gross sales from this enterprise are anticipated to be $5 million within the fiscal first quarter.
Additionally, indications of a slowdown in total demand inside the oil and gasoline sector and persisting supply-chain challenges within the Aerospace section stay as issues.
We anticipate revenues from the Aerospace section to be up 8.9% to $501.7 million and the Industrial section to say no 14.6% to $278.3 million for the fiscal first quarter.
Latest Developments of WWD
On Dec. 20, 2024, Woodward signed a definitive settlement to amass Safran Electronics & Protection’s electromechanical actuation enterprise situated in america, Mexico and Canada. This transfer will embody acquiring mental property, operational belongings, expert expertise and long-term buyer agreements associated to Horizontal Stabilizer Trim Actuation techniques. These techniques play a essential function in plane stabilization, making certain protected and environment friendly flight operations with notable functions just like the Airbus A350.
On Nov. 18, 2024, Woodward inked a definitive settlement to promote its heavy-duty gasoline generators combustion components enterprise, primarily based in Greenville, SC, to GE Vernova. The deal marked a big growth within the vitality and aerospace sectors, aiming to bolster GE Vernova’s operational capabilities whereas enabling Woodward to deal with its core development areas.
Moreover, the corporate has emphasised the significance of a seamless transition for its Greenville workforce. The settlement signifies the corporate’s dedication to its workers, making certain they’ve alternatives to proceed working underneath GE Vernova’s possession. This transaction is anticipated to settle in early 2025, pending the success of customary closing situations.
What Our Mannequin Says for WWD
Our confirmed mannequin doesn’t predict an earnings beat for WWD this time round. The mixture of a constructive Earnings ESP and a Zacks Rank #1 (Robust Purchase), 2 (Purchase) or 3 (Maintain) will increase the percentages of an earnings beat. This isn’t the case right here.
WWD has an Earnings ESP of -0.79% and a Zacks Rank #3. You possibly can uncover the perfect shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Shares to Take into account
Listed below are three shares you might wish to contemplate, as our mannequin exhibits that these have the fitting components to submit an earnings beat on this reporting cycle.
QUALCOMM Included QCOM at the moment has an Earnings ESP of +3.34% and a Zacks Rank #2. You possibly can see the complete list of today’s Zacks #1 Rank stocks here.
QCOM is scheduled to report quarterly earnings on Feb. 5. The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.93 per share and $10.92 billion, respectively. Shares of QCOM have gained 15.8% prior to now 12 months.
O’Reilly Automotive, Inc. ORLY presently has an Earnings ESP of +6.71% and a Zacks Rank #2. ORLY is scheduled to report quarterly numbers on Feb. 5. The Zacks Consensus Estimate for ORLY’s to-be-reported quarter’s earnings and revenues is pegged at $9.84 per share and $4.03 billion, respectively. Shares of ORLY have risen 28.1% prior to now 12 months.
Amazon.com, Inc. AMZN has an Earnings ESP of +4.78% and a Zacks Rank #2 at current. AMZN is scheduled to report quarterly figures on Feb. 6. The Zacks Consensus Estimate for AMZN’s to-be-reported quarter’s earnings and revenues is pegged at $1.52 per share and $187.28 billion, respectively. Shares of AMZN have elevated 51.2% prior to now 12 months
Zacks’ Analysis Chief Names “Inventory Most Prone to Double”
Our staff of specialists has simply launched the 5 shares with the best likelihood of gaining +100% or extra within the coming months. Of these 5, Director of Analysis Sheraz Mian highlights the one inventory set to climb highest.
This high decide is among the many most revolutionary monetary companies. With a fast-growing buyer base (already 50+ million) and a various set of leading edge options, this inventory is poised for large features. After all, all our elite picks aren’t winners however this one may far surpass earlier Zacks’ Shares Set to Double like Nano-X Imaging which shot up +129.6% in little greater than 9 months.
Free: See Our Top Stock And 4 Runners Up
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
O’Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
Woodward, Inc. (WWD) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
