Woodward, Inc. (NASDAQ:WWD) is expected to report an EPS of $1.63 and revenue of $893.2 million for Q1 fiscal 2026.The Aerospace segment is anticipated to drive significant growth with a 15.4% revenue increase, contributing to a 20.7% year-over-year rise in EPS.Woodward's strategic focus on its Industrial segment and robust financial health, highlighted by a low debt-to-equity ratio of 0.096 and a current ratio of 2.08, underline its growth potential.Woodward, Inc. (NASDAQ:WWD) stands out in the aerospace a ...

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Core Viewpoint - Woodward (WWD) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the consensus outlook suggesting a positive earnings picture that could influence its stock price in the near term [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on February 2, with analysts predicting quarterly earnings of $1.63 per share, reflecting a year-over-year increase of +20.7% [3]. - Revenues are projected to reach $891.31 million, which is a 15.4% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.04% over the last 30 days, indicating a slight reassessment by analysts [4]. - Despite this revision, the Most Accurate Estimate for Woodward is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +4.41% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [10]. - Woodward currently holds a Zacks Rank of 1, indicating a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Woodward exceeded the expected earnings of $1.83 per share by delivering $2.09, resulting in a surprise of +14.21% [13]. - Over the past four quarters, Woodward has consistently beaten consensus EPS estimates [14]. Industry Comparison - In contrast, Hexcel (HXL), another player in the Aerospace - Defense Equipment industry, is expected to report earnings of $0.5 per share, reflecting a year-over-year decline of -3.9% [19]. - Hexcel's revenues are projected to be $478.38 million, showing a modest increase of 1% from the previous year [19]. - The consensus EPS estimate for Hexcel has been revised down by 3.7% over the last 30 days, resulting in a negative Earnings ESP of -3.76% [20].

Core Viewpoint - Woodward, Inc. is set to announce its fiscal 2026 first quarter financial results on February 2, 2026, at 4:00 p.m. ET, followed by a conference call at 5:00 p.m. ET [1][2]. Group 1: Financial Results Announcement - The company will release its fiscal 2026 first quarter financial results on February 2, 2026, at approximately 4:00 p.m. ET [1]. - A news release will accompany the financial results announcement [1]. - The conference call will provide an overview of the company's business and financial performance [2]. Group 2: Conference Call Details - The conference call can be accessed live via the company's website [2]. - Participants can also join the call by dialing specific phone numbers for U.S. domestic and international listeners [3]. - The Conference ID for the call is 4675940, and participants are encouraged to call in prior to the start time for registration [3]. Group 3: Company Overview - Woodward, Inc. is a global leader in energy conversion and control solutions for aerospace and industrial equipment markets [4]. - The company focuses on designing and delivering energy control solutions aimed at powering a clean future [4]. - Woodward's systems are designed to perform in harsh environments, showcasing its innovative capabilities [4].

Key Takeaways WWD will wind down its China on-highway truck business by fiscal year-end after no viable divestiture offers.WWD will close a small China plant and cut limited sales, engineering and support roles tied to China OH.China OH has been a drag on Woodward, with lower volumes and mix hurting Industrial earnings.Woodward, Inc. (WWD) has announced plans to wind down its on-highway natural gas truck business in China (China OH) as part of a broader effort to sharpen the focus of its Industrial segment ...

Core Viewpoint - Woodward, Inc. is winding down its China on-highway natural gas truck operation to focus on priority markets and long-term growth opportunities [1][2][3] Group 1: Strategic Decision - The decision to wind down the China OH business is aimed at aligning the Industrial portfolio with key end-markets [2] - This move allows the company to redirect resources towards controls solutions in Transportation, Power Generation, and Oil & Gas [2] Group 2: Rationale Behind the Decision - Woodward has reviewed options for the China OH business for years, including full and partial divestitures, but no buyers emerged [3] - The company cited difficult conditions in China as a reason for the orderly wind-down, which includes closing a small manufacturing site [3] Group 3: Financial Context - The China OH unit has not delivered meaningful, steady results, prompting the decision to wind down [4] - In fiscal 2025, Woodward reported record sales and earnings, driven by strength in its Industrial and Aerospace segments [4] - Woodward shares are trading lower by 1.41% to $331.25 in premarket trading [4]

Core Viewpoint - Woodward, Inc. is winding down its on-highway natural gas truck business in China as part of a strategy to optimize its Industrial segment and product portfolio [1][2]. Group 1: Business Strategy - The decision to wind down the China on-highway (OH) business aligns Woodward's Industrial portfolio with priority end-markets and long-term growth opportunities [2]. - This strategic move allows the company to realign resources and focus on delivering leading control solutions across Transportation, Power Generation, and Oil & Gas markets [2]. Group 2: Operational Impact - The wind-down will involve closing a small manufacturing facility in China and reducing a limited number of sales, engineering, and product support staff [3]. - The decision is specific to the China OH business and does not affect other segments of Woodward [3]. Group 3: Financial Performance - The China OH business has not significantly contributed to Woodward's overall financial performance consistently [4]. - In fiscal year 2025, Woodward achieved record sales and earnings, driven by strong results in its Industrial and Aerospace segments [4].

Core Viewpoint - Woodward (WWD) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in Woodward's rating signifies an improvement in the company's underlying business, which is expected to drive the stock price higher as investors recognize this trend [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and stock movements, making it beneficial for investors to track these revisions [5]. - The Zacks Rank system effectively leverages earnings estimate revisions to classify stocks, enhancing investment decision-making [6]. Woodward's Earnings Estimates - Woodward is projected to earn $7.82 per share for the fiscal year ending September 2026, with no year-over-year change, while the Zacks Consensus Estimate has increased by 3.4% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9]. - Woodward's upgrade to Zacks Rank 1 places it in the top 5% of stocks covered by Zacks, suggesting potential for higher stock movement in the near term [9].

Core Insights - Major U.S. stock market indices closed positively on January 9, 2026, following December jobs data, with unemployment rate decreasing to 4.4% but job additions missing expectations [1] Group 1: Market Trends - Investors are shifting towards dividend-growth stocks due to a preference for quality and visibility amid economic uncertainty, as these stocks signal robust cash flows [2][9] - Stocks with a strong history of year-over-year dividend growth are seen as better investments for capital appreciation compared to simple dividend-paying stocks [3][6] Group 2: Characteristics of Dividend Growth Stocks - Dividend growth stocks belong to mature companies, providing a hedge against market volatility and economic uncertainty while offering downside protection through consistent payout increases [4] - These stocks typically exhibit superior fundamentals, including sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [5] Group 3: Selected Dividend Growth Stocks - Woodward Inc. (WWD): Expected revenue growth of 11.2% for fiscal 2026, long-term earnings growth rate of 15.20%, and annual dividend yield of 0.35% [10][11] - Cardinal Health (CAH): Projected revenue growth of 16.2% for fiscal 2026, long-term earnings growth rate of 13.90%, and annual dividend yield of 1.02% [12] - Fox Corp. (FOX): Anticipated revenue growth of 3.6% for fiscal 2027, long-term earnings growth rate of 10.10%, and annual dividend yield of 0.84% [13] - Kinross Gold (KGC): Expected revenue growth of 11% for fiscal 2026, long-term earnings growth rate of 36.5%, and annual dividend yield of 0.45% [14] - Donaldson (DCI): Projected revenue growth of 3.5% for fiscal 2026, long-term earnings growth rate of 10%, and annual dividend yield of 1.26% [15]

Market Overview - The U.S. stock market experienced a slight decline on December 26, 2025, primarily due to low trading volume following the Christmas holiday, with many institutional investors absent for the year [1] - Major indexes such as the S&P 500, Dow, and Nasdaq saw small dips, ending short winning streaks observed earlier in the week [1][9] Investment Strategy - During the holiday season, equity investors may favor dividend-growth stocks over high price-growth stocks, as companies with a consistent history of dividend increases often exhibit strong financial health [2] - Dividend-growth stocks provide a defensive hedge against economic uncertainty and market volatility, making them attractive during periods of low market activity [4] Dividend Growth Stocks - Stocks with a strong history of year-over-year dividend growth are considered healthier investments, offering greater potential for capital appreciation compared to simple dividend-paying stocks [3][6] - Five selected dividend-growth stocks include: - Woodward Inc. (WWD): Expected revenue growth of 11.1% for fiscal 2026, long-term earnings growth rate of 15.20%, and an annual dividend yield of 0.36% [10] - Enersys (ENS): Projected revenue growth of 4% for fiscal 2026, long-term earnings growth rate of 15%, and an annual dividend yield of 0.70% [11] - Donaldson (DCI): Anticipated revenue growth of 3.5% for fiscal 2026, long-term earnings growth rate of 10%, and an annual dividend yield of 1.31% [12] - Rockwell Automation (ROK): Expected revenue growth of 5.8% for fiscal 2026, long-term earnings growth rate of 12.4%, and an annual dividend yield of 1.38% [13] - Vertiv Holdings (VRT): Projected revenue growth of 27.5% for fiscal 2025, long-term earnings growth rate of 30.2%, and an annual dividend yield of 0.15% [14] Stock Selection Criteria - Stocks selected for their strong fundamentals include criteria such as: - 5-Year Historical Dividend Growth Greater Than Zero [6] - 5-Year Historical Sales Growth Greater Than Zero [7] - 5-Year Historical EPS Growth Greater Than Zero [7] - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Price/Cash Flow Less Than Industry Median [8] - 52-Week Price Change Greater Than S&P 500 [8]