The 10-second takeaway
For the quarter ended June 30 (Q3), Woodward met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew significantly. GAAP earnings per share dropped significantly.
Margins shrank across the board.
Woodward booked revenue of $483.8 million. The seven analysts polled by S&P Capital IQ expected revenue of $488.9 million on the same basis. GAAP reported sales were 5.1% higher than the prior-year quarter's $460.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.51. The eight earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. Non-GAAP EPS of $0.51 for Q3 were 28% higher than the prior-year quarter's $0.40 per share. GAAP EPS of $0.34 for Q3 were 15% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.8%, 60 basis points worse than the prior-year quarter. Operating margin was 8.7%, 90 basis points worse than the prior-year quarter. Net margin was 4.9%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $544.8 million. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $1.93 billion. The average EPS estimate is $2.26.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 532 members out of 544 rating the stock outperform, and 12 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Woodward a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Woodward is outperform, with an average price target of $43.13.
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