NASDAQ$WWD

Woodward Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Woodward reported a solid start to fiscal year 2020, with Aerospace performing strongly despite 737 MAX uncertainty, and Industrial performance aligning with expectations.

Woodward's first quarter of fiscal year 2020 saw net sales of $720 million, compared to $653 million in the prior year. Net earnings were $53 million, or $0.83 per share, compared to $49 million, or $0.77 per share, for the prior year quarter.

  • Net sales reached $720 million, up from $653 million in the prior year.
  • Net earnings increased to $53 million, or $0.83 per share, compared to $49 million, or $0.77 per share in the prior year.
  • Aerospace segment sales grew by 21% to $474 million, driven by broad-based growth across commercial and defense sectors.
  • Industrial segment sales declined to $246 million due to softness in oil and gas, partially offset by renewable power systems.

Headline financials

Total Revenue

$720M

Previous: $653M+10.3%
EPS (adj)

$1.10

Previous: $0.96+14.6%
Effective tax rate

13.3%

Previous: 20.1%-33.8%
Capital Expenditures

-$17.2M

Previous: -$31.3M+45.0%
Free Cash Flow

$36.1M

Previous: $17.8M+103.3%
Net Income

$53.4M

Previous: $49.1M+8.7%
Operating Income

-$667M

Previous: -$621M-7.3%
Gross Profit

$185M

Previous: $161M+15.4%
Cash & Equivalents

$207M

Previous: $71.6M+189.0%
Total Assets

$4.01B

Previous: $3.86B+3.8%
Stock-Based Comp

$11M

Previous: $10.9M+1.2%

Revenue & EPS history

Woodward · Revenue · Quarterly

$720M

Q1 2020+10.3%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Woodward · $720M total across 2 segments · Q1 2020

  • Aerospace
    $474M+20.6%
  • Industrial
    $246M-5.4%

Forward guidance

Total net sales for fiscal 2020 are now expected to be between $2.9 and $3.0 billion. Adjusted earnings per share is now expected to be between $5.22 and $5.52 based on approximately 65 million of fully diluted weighted average shares outstanding.

Tailwinds

  • Aerospace sales are anticipated to be up low single digits compared to the prior year.
  • Aerospace segment earnings as a percent of segment net sales are still expected to be approximately 21 percent.
  • Industrial segment earnings as a percent of segment net sales are expected to be approximately 14 percent.
  • Adjusted free cash flow is expected to be approximately $420 million.
  • Within the 18 months following the close of the merger, we anticipate repurchasing approximately $1.5 billion of Woodward Hexcel stock, or approximately 10 percent of the anticipated market capitalization of the combined entity.

Headwinds

  • Impacts of the 737 MAX.
  • Weaker oil and gas sales.
  • The sale of the renewables portfolio.
  • The lower tax rate.
  • Higher outstanding share count.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.1%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+18.5%

Q2 2023

Best reaction

-17.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.7%+1.3%-3.1%
Q1 2026+14.3%+18.7%+18.1%
Q4 2025+12.5%+14.9%+20.2%
Q3 2025-0.0%+0.4%-2.9%
Q2 2025+1.9%+6.9%+20.1%
Q1 2025-1.8%+3.9%-5.6%
Q4 2024+6.4%+2.4%-3.0%
Q3 2024-17.1%-16.8%-10.0%
Q2 2024+7.8%+12.1%+21.4%
Q1 2024+1.6%-2.2%+0.9%
Q4 2023-2.9%-2.4%+0.8%
Q3 2023+10.6%+5.5%+8.0%
Q2 2023+18.5%+13.4%+9.8%
Q1 2023-7.6%-6.2%-9.6%
Q4 2022-0.4%+1.2%-6.6%
Q3 2022-10.9%-9.0%-11.1%
Q2 2022-7.7%-5.6%-8.2%
Q1 2022+0.6%+1.3%+14.0%
Q4 2021-1.3%+0.4%-8.5%
Q3 2021-7.0%-6.5%+0.4%
Q2 2021+1.6%+3.9%+1.4%
Q1 2021+5.5%+4.2%+4.0%
Q4 2020+1.0%+6.7%+10.6%
Q3 2020+4.8%+12.0%+10.1%
Q2 2020-6.4%+5.7%+30.7%
Q1 2020-0.3%+2.2%-5.2%
Q4 2019+0.8%-2.4%+3.0%
Q3 2019-4.3%-1.5%-2.9%
Q2 2019+6.0%+9.4%+5.9%
Q1 2019+11.6%+14.6%+24.1%
Q4 2018+7.6%+3.4%-3.7%
Q3 2018+0.7%-5.3%-1.8%
Q2 2018-1.1%-2.5%+0.3%
Q1 2018-6.9%-5.7%-8.4%
Q4 2017+4.9%+1.7%-3.9%
Q3 2017+5.5%+2.5%-1.9%
Q2 2017-2.2%-1.2%-2.8%
Q1 2017+2.6%+3.6%+5.0%
Q4 2016+7.0%+5.9%+9.0%
Q3 2016-2.8%-2.7%+4.2%
Q2 2016+4.8%
Q1 2016-3.2%
Q4 2015+0.7%
Q3 2015-8.4%
Q2 2015+0.7%
Q1 2015+6.5%
Q4 2014-5.6%
Q3 2014+9.4%
Q2 2014+7.3%
Q1 2014-3.0%
Q4 2013+0.7%
Q3 2013-0.9%
Q2 2013+2.7%
Q1 2013-4.6%
Q4 2012+8.3%
Q3 2012-3.1%
Q2 2012+4.0%
Q1 2012+2.6%
Q4 2011-5.4%
Q3 2011-5.1%
Q2 2011-0.9%
Q1 2010-1.2%
Q1 2011+2.6%
Q4 2008+5.4%
Q2 2010+5.4%
Q4 2010+5.4%
Q3 2010+4.2%
Q4 2009+4.2%
Q3 2009+4.2%

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