Woodward Analysts Slash Their Forecasts After Q3 Results

Woodward, Inc. WWD reported mixed third-quarter financial results and lowered its FY24 revenue guidance on Monday.

Woodward reported quarterly earnings of $1.63 per share which beat the analyst consensus estimate of $1.46 per share. Woodward reported quarterly sales of $847.688 million which missed the analyst consensus estimate of $853.523 million, according to data from Benzinga Pro.

“We delivered a solid quarter, driven by robust end-market demand and the dedicated efforts of all our members,” stated Chip Blankenship, Chairman and Chief Executive Officer. “In Aerospace, increased utilization drove strong aftermarket demand in the third quarter. Total Industrial growth moderated as expected. Industrial benefitted from increased sales in power generation as well as transportation despite flat China on-highway shipments year-over-year. In this dynamic market, we remain focused on growth, operational excellence, and innovation, which continue to position Woodward to deliver sustained long-term shareholder value.”

Woodward revised its FY24 sales forecast from $3.25 billion-$3.35 billion to $3.25 billion-$3.30 billion. The company said it now expects adjusted earnings of $5.80 to $6.00 per share, versus earlier forecast of $5.70 to $6.00 per share.

Woodward shares fell 18.4% to trade at $149.58 on Tuesday.

These analysts made changes to their price targets on Woodward following the announcement.

• TD Cowen analyst Gautam Khanna maintained Woodward with a Buy rating, while lowering the price target from $200 to $186.
• Deutsche Bank analyst Scott Deuschle maintained the stock with a Buy rating, while cutting the price target from $210 to $197.

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