NASDAQ$WWD

Woodward Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Delivered earnings in line with expectations, but the Industrial segment had a challenging quarter.

Woodward reported a 14% increase in net sales, reaching $619 million, but profitability was impacted by ongoing industry-wide challenges. Net earnings were $30 million, or $0.49 per share.

  • Net sales increased by 14% to $619 million compared to the same period last year.
  • Net earnings were $30 million, or $0.49 per share, for the quarter.
  • Aerospace segment sales increased by 18%, driven by recovery in passenger traffic and increased aircraft utilization.
  • Industrial segment sales increased by 9%, primarily due to higher marine sales and strong industrial turbomachinery sales.

Headline financials

Total Revenue

$619M

Previous: $542M+14.2%
EPS (adj)

$0.49

Previous: $0.56-12.5%
Effective tax rate

6.7%

No prior period
Capital Expenditures

-$24.4M

Previous: -$13.1M-85.9%
Free Cash Flow

$5.22M

Previous: $17.2M-69.6%
Net Income

$29.6M

Previous: $30.3M-2.3%
Operating Income

-$593M

Previous: -$514M-15.4%
Gross Profit

$126M

Previous: $122M+2.9%
Cash & Equivalents

$99.3M

Previous: $99.3M+0.0%
Total Assets

$3.89B

Previous: $4.04B-3.5%
Stock-Based Comp

$11.3M

Previous: $11.9M-4.8%

Revenue & EPS history

Woodward · Revenue · Quarterly

$619M

Q1 2023+14.2%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Woodward · $619M total across 2 segments · Q1 2023

  • Aerospace
    $396M
  • Industrial
    $223M

Forward guidance

Woodward’s fiscal 2023 outlook assumes improving operational and financial performance while continuing to navigate a challenging industry-wide environment.

Tailwinds

  • Total net sales for fiscal 2023 are expected to be between $2.60 billion and $2.75 billion.
  • Aerospace sales growth percentage is expected to be between 14 and 19 percent.
  • Industrial sales growth percentage is expected to be flat to up 5 percent.
  • Aerospace segment earnings as a percent of segment net sales are expected to increase by approximately 150 to 200 basis points.
  • Free cash flow is expected to be between $200 million and $250 million, with an anticipated free cash flow conversion rate of greater than 100 percent.

Headwinds

  • The supply chain and labor disruptions are anticipated to begin to subside during the second half of the fiscal year.
  • The timing of improvement is uncertain and results could be negatively impacted if supply chain and labor disruptions do not improve as anticipated.
  • EBIT is expected to include approximately $60 million of annual variable incentive compensation costs, an increase of approximately $50 million over fiscal year 2022.
  • The effective tax rate is expected to be approximately 19 percent.
  • Capital expenditures are expected to be approximately $80 million.

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 2023

Historical avgQ1 2023

+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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