Woodward Inc. (NASDAQ: WWD) has confirmed that it will release its quarterly earnings on Monday, January 31, 2022, after market close.
What to look for
Earnings: Stockearning’s estimated EPS for fiscal Q1 2022 is expected to be around $0.81 per share. In the last quarter, the company reported EPS of $0.82 per share, missing ion estimates of $0.86. During the same quarter a year ago, the company had earnings per share of $0.75 per share. Historical EPS performance shows that in the past 12 quarters, the company has topped estimates eight times (66) and missed four times (33%).
Revenue: The company is expected to report revenue of $590.08 million for the current fiscal quarter with analysis predicting estimates range of between $564 million and $603.9 million. In the first quarter of fiscal 2021, the company had revenue of $537.62 million which suggests a YoY growth of 9.8%.woodward reported net sales of $570 million in the fourth quarter of fiscal 2021. For the current fiscal year, the company is expected to report sales of $2.53 billion, and for fiscal 2023, analysts predict that the company will post revenue of $2.78 billion.
Stock movement: WWD shares have lost 2.6% since the company released its fourth-quarter earnings. Interestingly, WWD shares have been UP 30 times out of the past 48 quarters. So, the historical price reaction suggests a 62% probability of the share price going UP once the company reports its fiscal Q1 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 4%.
What analysts are saying
Truist analyst Michael Ciarmoli upgraded the stock from Hold to Buy and also raised the price target on the tech company’s shares from $110 to $143 as part of his wider coverage on Defense and Aerospace stocks. In a research note to investors, the analyst said that with the commercial aircraft market recovering, the company is expected to reclaim its position among the sector's leading suppliers. Ciarmoli adds that the company's large position in the narrow-body market, along with rising demand and the resumption of original provisioning, should support double-digit revenue growth in the aerospace sector in the coming 12-24 months.
Barclays analyst David Strauss slashed his price target on WWD from $130 to $125 and maintained a Hold rating on the stock. However, with airline activity improving and equities "still trading at a large discount" on a recovery to pre-pandemic heights in 2023-2024, the analyst remains optimistic about aerospace companies.
Also, Goldman Sachs analyst Noah Poponak downgraded the stock from Hold to Sell and set a price target of $102, representing a downside of 11%. According to the analyst, Woodward is 25% military and 35% industrial, but it is among the most expensive equities he covers. In a research note, Poponak reminds investors that the company's performance has "recently been choppy," since it is one of the few businesses to experience substantial supply chain problems, which could cause further volatility in earnings.
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