Key Takeaways:
Woodward, Inc. (NASDAQ:WWD) reported fiscal second-quarter sales and profit that beat Wall Street estimates, propelled by strong demand across its aerospace and industrial markets.
"We delivered outstanding second quarter results reflecting robust demand and strong execution across both segments,” Chip Blankenship, Chairman and Chief Executive Officer, said in a statement. “Aerospace performance was largely driven by continued strength in commercial services activity and OEM demand. Industrial grew across the board in transportation, power generation, and oil and gas."
The company posted adjusted earnings of $2.27 per share on revenue of $1.09 billion for the quarter ended March 31. Analysts surveyed by Zacks Investment Research expected earnings of $2.00 per share on revenue of $992.8 million.
Based on the strong first-half performance, Woodward raised its financial outlook for the full fiscal year. The company now expects sales growth of 20 to 23 percent, up from a prior range of 14 to 18 percent. It forecasts adjusted earnings per share between $9.15 and $9.45, a significant increase from the previous guidance of $8.20 to $8.60.
The Aerospace segment’s sales increased 25 percent year-over-year to $703 million, driven by a 36 percent surge in commercial services and a 30 percent rise in commercial OEM sales. Segment earnings were $158 million, up 27 percent from the prior year.
The Industrial segment saw sales grow 20 percent to $387 million, led by a 34 percent increase in the transportation market. The segment’s earnings jumped 43 percent to $66 million, with margins expanding to 17.0 percent from 14.3 percent a year earlier.
The updated guidance suggests management is confident that demand will remain strong through the second half of the year. Investors will look for further details on margin expansion and segment-specific demand drivers in the company's investor conference call scheduled for later today.
This article is for informational purposes only and does not constitute investment advice.
