Aerospace and defense company Woodward (NASDAQ:WWD) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Woodward beat analysts’ revenue expectations by 5.6% last quarter, reporting revenues of $854.5 million, up 10% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Woodward a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Woodward’s revenue to decline 1.5% year on year to $775.3 million, a reversal from the 27.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Woodward has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.4% on average.
Looking at Woodward’s peers in the aerospace segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 25.8%, beating analysts’ expectations by 4.8%, and Textron reported a revenue decline of 7.2%, falling short of estimates by 5.9%. AAR traded up 8.6% following the results while Textron was down 3.6%.
Read our full analysis of AAR’s results here and Textron’s results here.
Investors in the aerospace segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Woodward is up 4.6% during the same time and is heading into earnings with an average analyst price target of $199.23 (compared to the current share price of $185.25).
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