Woodward Fourth Quarter Earnings Sneak Peek

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Woodward Inc (NASDAQ:WWD) will unveil its latest earnings on Tuesday, November 13, 2012. Woodward designs, manufactures, and services energy control systems and components for aircraft and industrial engines and turbines.

Woodward Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 57 cents per share, a decline of 5% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 2.1% compared to last year’s $1.93.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the third quarter, it reported profit of 49 cents per share versus a mean estimate of 45 cents. Two quarters ago, it reported net income of 55 cents per share.

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A Look Back: In the third quarter, profit fell 21.5% to $28.3 million (40 cents a share) from $36.1 million (51 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 5% to $460.2 million from $438.5 million.

Stock Price Performance: Between September 12, 2012 and November 7, 2012, the stock price had fallen $3.51 (-9.6%), from $36.41 to $32.90. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 17, 2012, when shares rose for 12 straight days, increasing 14.1% (+$4.63) over that span. It saw one of its worst periods between August 21, 2012 and August 30, 2012 when shares fell for eight straight days, dropping 6.1% (-$2.25) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 8% in revenue from the year-earlier quarter to $528.2 million.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 27.6% in the fourth quarter of the last fiscal year, 26.9% in the first quarter and 20.8% in the second quarter before declining in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 18.8% in the fourth quarter of the last fiscal year, 11.7% in the first quarter and 11.9% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.61 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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