Woodward, Inc. WWD reported second-quarter fiscal 2017 earnings of 60 cents per share, missing the Zacks Consensus Estimate of 66 cents by 9.1%. Earnings also declined 7.7% from the prior-year figure of 65 cents.
The company’s quarterly net sales of $500.4 million missed the Zacks Consensus Estimate of $501 million by 0.1%. However, revenues grew 4.4% from the year-ago figure of $479.4 million, mainly on account of growth in sales witnessed at the Aerospace segment.
Woodward’s total costs and expenses increased 5.9% year over year to $450.1 million in the reported quarter. The upside was backed by higher cost of goods sold, selling, general, and administrative expenses as well as interest expenses.
Quarterly Segmental Performance
Aerospace: Segment revenues were up 10.3% year over year to $320.5 million, primarily driven by higher OEM and aftermarket sales in both defense and commercial markets.
Earnings came in at $58.2 million, up 15.1% on the back of higher sales volume.
Industrial: Segment revenues totaled $179.9 million, down 4.7% year over year owing to decline in industrial gas turbine aftermarket sales and wind turbine converter sales.
Again, earnings tanked 12.2% to $17.1 million primarily due to lower sales volume and planned increase in new facility costs, which was partially offset by savings related to major cost reduction initiatives that had been implemented previously.
Woodward’s cash and cash equivalents as of Mar 31, 2017 were $79.0 million, compared with $81.1 million as of Sep 30, 2016.
Long-term debt (excluding current portion) was $562.0 million as of Mar 31, 2017, down from $577.2 million as of Sep 30, 2016.
Free cash inflow was $55.6 million in the fiscal second quarter, compared with 258.1 million in the year-ago quarter.
In the reported quarter, net cash generated from operating activities was $130.0 million, compared with $361.7 million in the prior-year quarter.
Payments for property, plant and equipment were $43.1 million, compared with $99.3 million in the year-ago quarter.
Fiscal 2017 Guidance
Net sales growth projection is maintained in the 4−6% range. The company also continues to expect earnings in the band of $2.95–$3.25 per share.
Upcoming Peer Releases
Sensata Technologies Holding N.V. ST is slated to release its quarterly numbers on Apr 24. The Zacks Consensus Estimate is pegged at 68 cents.
Nanometrics Incorporated NANO is scheduled to release its quarterly numbers on May 2. The Zacks Consensus Estimate is pegged at 23 cents.
Allied Motion Technologies Inc. AMOT is expected to release its quarterly numbers on May 3. The Zacks Consensus Estimate is pegged at 25 cents.
Woodward currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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