NASDAQ$WWD

Woodward Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Woodward's financial results were impacted by COVID-19 disruptions and higher inflation, but recovery was seen across most end markets.

Woodward reported a 1% increase in net sales to $587 million, but net earnings decreased to $48 million due to COVID-19 related disruptions, supply chain constraints, labor shortages, and higher inflation.

  • Net sales increased by 1% to $587 million.
  • Net earnings decreased from $68 million to $48 million.
  • Aerospace segment sales increased due to recovering passenger traffic and increased aircraft utilization, while defense sales decreased.
  • Industrial segment sales were positively impacted by increased demand in marine transportation and power generation, as well as a recovering oil and gas market.

Headline financials

Total Revenue

$587M

Previous: $581M+0.9%
EPS (adj)

$0.72

Previous: $1.04-30.8%
Effective tax rate

11.4%

Previous: 13.0%-12.3%
Capital Expenditures

-$24.2M

Previous: -$13.3M-81.4%
Free Cash Flow

$23.8M

Previous: $55M-56.8%
Net Income

$47.9M

Previous: $68.3M-29.9%
Operating Income

-$538M

Previous: -$553M+2.6%
Gross Profit

$133M

Previous: $147M-9.3%
Cash & Equivalents

$208M

Previous: $288M-27.6%
Total Assets

$3.89B

Previous: $4.02B-3.2%
Stock-Based Comp

$2.07M

Previous: $2.97M-30.4%

Revenue & EPS history

Woodward · Revenue · Quarterly

$587M

Q2 2022+0.9%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Woodward · $587M total across 2 segments · Q2 2022

  • Aerospace
    $373M+2.2%
  • Industrial
    $214M-1.4%

Forward guidance

Woodward has revised its fiscal year 2022 outlook due to greater than anticipated COVID-19 operational related disruptions and net inflationary impacts during the second quarter of fiscal 2022.

Tailwinds

  • Total net sales for 2022 are expected to be between $2.40 and $2.55 billion.
  • Aerospace sales growth percentage is still expected to be in the low double digits to mid-teens.
  • Industrial sales growth percentage is now expected to be between 5 and 10 percent.
  • Aerospace segment earnings as a percent of segment net sales are now expected to be approximately 18 percent.
  • Industrial segment earnings as a percent of segment net sales are now expected to be between 10 and 11 percent.

Headwinds

  • The adjusted effective tax rate is now expected to be approximately 20 percent.
  • Adjusted free cash flow is now expected to be approximately $200 to $230 million.
  • Capital expenditures are now expected to be approximately $60 million.
  • Adjusted earnings per share is now expected to be between $3.20 and $3.60 based on approximately 64 million of fully diluted weighted average shares outstanding.
  • COVID-19 operational related disruptions and net inflationary impacts during the second quarter of fiscal 2022 were greater than anticipated.

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 Q2 2022

Historical avgQ2 2022

+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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