Why Shares of Woodward Inc. Jumped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of aerospace and energy supplier Woodward Inc. (NASDAQ: WWD  ) jumped as much as 10% today after reporting earnings.

So what: Woodward's first-quarter revenue was flat compared to a year ago at $482.5 million, but net income was up 5.5% to $44.8 million, or $0.66 per share. Analysts were only expecting $0.50 per share in earnings, and that bottom line beat caused the stock to jump today.  

Now what: Part of the earnings beat was due to more than 2 million shares being bought back by the company over the past year. That has the effect of increasing earnings per share more than actual earnings growth. I'd like to see more revenue growth before jumping in at this price, because earnings have been hit or miss over the past year.

Boost your 2014 returns with The Motley Fool's top stock
If you're looking for a top stock to buy now, The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2926742, ~/Articles/ArticleHandler.aspx, 7/22/2014 4:01:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement