|
Related Topics
|
Category: Stock Market and Woodward
Date: 19 November 2019 Stock Price: $113.59 We take a look at the 4th quarter 2019 earnings report of Woodward an independent designer, manufacturer and service provider of control solutions to the aerospace and industrial markets
|
About Woodward
Woodward is an independent designer, manufacturer, and service provider of control solutions for the aerospace and industrial markets. The company’s innovative fluid, combustion, electrical, and motion control systems help customers offer cleaner, more reliable, and more efficient equipment. Our customers include leading original equipment manufacturers and end users of their products. Woodward is a global company headquartered in Fort Collins, Colorado, USA
Financial overview of Woodward's 4th quarter 2019 earnings report
The data below refers to the latest quarter unless specified otherwise
- Sales: $736.537 million (up from $719,359 million for the same quarter of the previous year)
- Sales increased by 2.3% over the last 12 months
- Total cost and expenses: $659.922 million (up from $640.332 million for the same quarter of the previous year)
- Total cost and expenses increased by 3.05% over the last 12 months.
- Net income: $66.796 million (down from $74.512 million for the same quarter of the previous year)
- Diluted income per share: $1.03 (down from $1.16 for the same quarter of the previous year)
- PE ratio of Woodward: 27.6
- Dividend declared: $0.1625
- Dividend yield of Woodward: 0.6%
- Diluted weighted number of shares outstanding: 64.553 million (up from 64.114 million for the same quarter of the previous year)
- Cash and cash equivalents: $99.073 million
- Cash and cash equivalents per share: 1,54
- Cash and cash equivalents makes up 1.4% of Woodward's market capital
- Cash and cash equivalents makes up 2.5% of Woodward's total assets
- Receivables, net: $591.529 million
- Receivables makes up 14.95% of Woodward's' total assets
- Inventories: $516.836 million
- Inventories makes up 13.1% of Woodward's total assets
- Stockholders equity in Woodward's: $1.726 billion
- Stockholders equity per share in Woodward: $26.73
- Woodward is trading at 4.24 times its stockholders equity which is outside the expected range of between 2 and 4 times that most firms tend to trade at
- Cash generated from operations (for the full fiscal 2019): $390.608 million
- Cash generated from operations per share (for the full fiscal 2019): $6.05
Woodward (NASDAQ:WWD) management commentary on their 4th quarter 2019 earnings
Fort Collins, Colo., November 18, 2019—Woodward, Inc. (NASDAQ:WWD) today reported financial results for its fiscal year 2019 and fourth quarter ending September 30, 2019
“We delivered solid results for 2019. Our Aerospace and Industrial segments benefitted from strong product portfolios and healthy market fundamentals, somewhat offset by headwinds from the 737 MAX grounding and the impact of a significant customer bankruptcy in our renewables business,” said Thomas A. Gendron, Chairman and Chief Executive Officer of Woodward. “As we look ahead to fiscal year 2020, we are well positioned to deliver another year of strong performance, maintain positive momentum in our Aerospace segment, drive margin improvements in our Industrial segment and consistently deliver operational excellence.
“We delivered solid results for 2019. Our Aerospace and Industrial segments benefitted from strong product portfolios and healthy market fundamentals, somewhat offset by headwinds from the 737 MAX grounding and the impact of a significant customer bankruptcy in our renewables business,” said Thomas A. Gendron, Chairman and Chief Executive Officer of Woodward. “As we look ahead to fiscal year 2020, we are well positioned to deliver another year of strong performance, maintain positive momentum in our Aerospace segment, drive margin improvements in our Industrial segment and consistently deliver operational excellence.
Fiscal Year 2020 Outlook
- Total net sales for fiscal 2020 are expected to be between $3.0 and $3.1 billion. Aerospace sales are anticipated to be up approximately 6 percent compared to the prior year. While ASC 606 favorably impacted Aerospace sales growth in fiscal year 2019, it is expected to have an unfavorable impact on sales growth in fiscal year 2020 due to the timing of sales orders and inventory levels. Industrial sales are expected to be flat to up low single digits as compared to the prior year.
- Aerospace segment earnings as a percent of segment net sales are expected to be approximately 21 percent. Industrial segment earnings as a percent of segment net sales are expected to be approximately 14 percent. The effective tax rate is expected to be approximately 22 percent. Free cash flow is expected to be approximately $400 million.
- Earnings per share is expected to be between $5.30 and $5.60 based on approximately 64 million of fully diluted weighted average shares outstanding.
Woodward (NASDAQ: WWD) stock price history
The image below obtained from Google, shows the stock price history of Woodward (NASDAQ: WWD) for the last 5 years. Its been a very good time for Woodward stockholders over the last 5 years. 5 years ago the stock of Woodward was trading at $51.80 and its currently trading at $113.60 a stock. That's a healthy 119.3% return provided to Woodward stockholders over the last 5 years.
Woodward's stock is trading at a lot closer to its 52 week high of $119.20 than it is to its 52 week low of $68.40 which to us is a clear indication that the short term sentiment and momentum of Woodward's stock is very positive.
Woodward's stock is trading at a lot closer to its 52 week high of $119.20 than it is to its 52 week low of $68.40 which to us is a clear indication that the short term sentiment and momentum of Woodward's stock is very positive.
Recent coverage of Woodward
The extract below covers the latest regarding Woodward as obtained from Zacks.com
Woodward (WWD - Free Report) came out with quarterly earnings of $1.22 per share, missing the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $1.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.43%. A quarter ago, it was expected that this maker of cockpit controls and other equipment for the defense and aerospace markets would post earnings of $1.17 per share when it actually produced earnings of $1.30, delivering a surprise of 11.11%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times. Woodward, which belongs to the Zacks Instruments - Control industry, posted revenues of $736.54 million for the quarter ended September 2019, missing the Zacks Consensus Estimate by 0.49%. This compares to year-ago revenues of $719.36 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Woodward shares have added about 54.5% since the beginning of the year versus the S&P 500's gain of 24.5%.
Read the full article here
Woodward (WWD - Free Report) came out with quarterly earnings of $1.22 per share, missing the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $1.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.43%. A quarter ago, it was expected that this maker of cockpit controls and other equipment for the defense and aerospace markets would post earnings of $1.17 per share when it actually produced earnings of $1.30, delivering a surprise of 11.11%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times. Woodward, which belongs to the Zacks Instruments - Control industry, posted revenues of $736.54 million for the quarter ended September 2019, missing the Zacks Consensus Estimate by 0.49%. This compares to year-ago revenues of $719.36 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Woodward shares have added about 54.5% since the beginning of the year versus the S&P 500's gain of 24.5%.
Read the full article here
Woodward (NASDAQ: WWD) stock valuation
So what do we value Woodward stock at after their latest earnings report and their fiscal guidance provided? Based on their 4th quarter and full fiscal 2019 earnings report and their earnings guidance provided for their 2020 fiscal year our valuation model provides a target (full value) price for Woodward stock at $89.60 a stock.
We therefore believe the stock of Woodward is overvalued at its current price. We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $89.60. A good entry point into Woodard would therefore be at $80.70 or below.
We expect the stock of Woodward to pull back from current levels to levels closer to our target (full value) price in coming weeks and months.
We therefore believe the stock of Woodward is overvalued at its current price. We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target (full value) price which in this case is $89.60. A good entry point into Woodard would therefore be at $80.70 or below.
We expect the stock of Woodward to pull back from current levels to levels closer to our target (full value) price in coming weeks and months.
Next earnings release of Woodward
It is expected that Woodward will release their 1st quarter 2020 earnings report in mid February 2020