Strong aerospace demand and China's push away from burning oil fueled better-than-expected earnings at Woodward (WWD 0.65%). The stock is up 8% as of noon ET after the company easily topped quarterly expectations.

Robust demand and profitable growth

Woodward is a diversified industrial manufacturer focused on power and control products for the aerospace and heavy-equipment markets. The company's fiscal second quarter saw strong demand from China for natural gas truck and bus powertrains, as well as significant interest in aerospace spare parts.

The company earned $1.62 per share in the quarter on sales of $835 million, topping Wall Street's $1.32 per share in earnings on sales of $807 million consensus estimate. Net sales were up 16%, and net earnings were up 170% to $98 million.

"Our improving operational performance allows us to capitalize on robust demand for Woodward products and services across both aerospace and industrial markets," CEO Chip Blankenship said in a statement. "As we drive profitable growth, operational excellence, and innovation, we remain well positioned to deliver long term shareholder value."

Woodward now expects to earn between $5.70 and $6 per share for the full year, up from the $5 to $5.40 range announced in late January. The company also raised its guidance for industrial revenue growth by 500 basis points and said it expects the segment to be significantly more profitable than it guided for just a few months ago.

Is Woodward stock a buy after its strong earnings report?

Blankenship came to Woodward in 2022 with a strong reputation in the aerospace sector, and has done little to tarnish that reputation in his short time in charge. This company has done a good job focusing its portfolio on its most lucrative offerings, and the results are beginning to reflect that focus.

Demand for commercial aerospace spare parts should remain strong, thanks to the ongoing issues at Boeing and delays on new plane development. China was more of a wild card heading into earnings because of questions about the country's economy, but Woodward's guidance suggests no slowdown.

Shares of Woodward are now up 70% over the past year. If the company's guidance is correct, the stock can still move higher from here.