FORT COLLINS, Colo., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Woodward (NASDAQ: WWD), a leader in aerospace and industrial energy control solutions, today announced the appointment of Ron Charles as its Executive Vice President and Chief Human Resources Officer, effective September 9. In this role, he will lead the company's overall human resources function, including organizational capability, member experience, talent management, total rewards, and diversity, inclusion and belonging, as well as communications a ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score evaluates a company's financial health and future outlook through projected earnings and sales [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores, highlighting stocks with attractive value, growth potential, and positive momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize returns [10] Stock Example: Woodward, Inc. - Woodward, Inc. is an independent provider of energy control solutions, currently rated 3 (Hold) with a VGM Score of B, and a Growth Style Score of B, indicating a projected year-over-year earnings growth of 40.4% for the current fiscal year [12][13] - Recent analyst revisions have increased the earnings estimate for fiscal 2024 by $0.03 to $5.91 per share, with an average earnings surprise of 18.5%, making it a potential candidate for growth investors [13]

Summary of Woodward (WWD) FY Conference Call - September 05, 2024 Company Overview - **Company Name**: Woodward, Inc. - **Industry**: Aerospace and Defense, Industrial Markets - **Headquarters**: Fort Collins, Colorado - **Market Capitalization**: Approximately $10 billion with 60 million shares trading around $162 [2][2] - **Net Debt**: $340 million [2][2] Key Points and Arguments Business Dynamics - Woodward has evolved over 150 years from controlling water wheels to manufacturing fuel control systems for aerospace and industrial applications [3][3] - The company specializes in fuel control, air oil management, combustion control, and motion control [4][4] China On Highway Business - Woodward's fuel control systems for natural gas engines in heavy-duty trucks in China have seen a significant market share shift from diesel to natural gas, increasing from 10-15% to 30% [7][8] - The company reported record levels of business in the last five quarters, exceeding $50 million per quarter [9][9] - Anticipated demand for the upcoming quarter is projected between $10 million to $15 million due to near-term destocking [9][9] Aerospace Fuel Control Business - Woodward is a key supplier for the LEAP engine used in the Boeing 737 MAX and has expanded its content significantly through acquisitions [13][18] - The company has tripled its content per aircraft for both the A320 and 737 platforms, with $250,000 and $350,000 of content per shipset respectively [18][18] Aftermarket and Legacy Fleet - The legacy fleet is expected to plateau over the next four to five years, with strong aftermarket performance driven by increased flight hours [25][26] - The company anticipates a significant increase in aftermarket demand for the LEAP and Geared Turbofan engines starting around 2026-2027 [22][23] Defense Business - The JDAM program has seen a decline in demand but is expected to stabilize following a recent $7.5 billion contract with Boeing and the Air Force [29][30] - Increased geopolitical tensions, particularly in Israel, have driven some demand for defense products [32][32] Supply Chain Management - Woodward has stabilized its supply chain through proactive measures and investments in rapid response machining centers, spending approximately $10 million [42][44] - The company has improved its performance by identifying supply issues early and maintaining continuity of supply [44][44] Capital Allocation and Financial Performance - Woodward has successfully implemented price increases to recover from inflation, achieving 7-9% year-over-year price realization [53][53] - Industrial margins improved by 400 basis points over two years, reaching 14% [55][55] - Aerospace margins are projected to improve to approximately 19% for 2024, with a target of 20-22% by 2026 [56][57] - The company has returned $1.3 billion to shareholders over the last six years, primarily through share repurchases [63][63] Future Outlook - Woodward is well-prepared for anticipated production ramps in the aerospace sector, with existing capacity and plans for increased automation [45][46] - The company is focused on organic growth and is selective in pursuing acquisitions that align with its strategic goals [61][62] Additional Important Insights - The company has a strong focus on automation to enhance efficiency and reduce reliance on labor [48][49] - Woodward's leadership transition has positively impacted its operational strategies and supply chain management [41][41]

FORT COLLINS, Colo., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Woodward (NASDAQ: WWD), a leader in aerospace and industrial energy control solutions, today announced the appointment of Karrie Bem as Executive Vice President, General Counsel, Corporate Secretary, and Chief Compliance Officer, effective September 16. In this role, she will be responsible for leading the company's overall legal and compliance function. This includes developing and maintaining comprehensive programs, processes and procedures for legal, ...

It has been about a month since the last earnings report for Woodward (WWD) . Shares have added about 9.5% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Woodward due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Woodward Q3 Earnings Beat Estimates Woodward reported ...

FORT COLLINS, Colo., Aug. 21, 2024 (GLOBE NEWSWIRE) -- Woodward (NASDAQ: WWD) today announced that Chip Blankenship, Chairman and Chief Executive Officer, and Bill Lacey, Chief Financial Officer, will participate in a virtual fireside chat hosted by Noah Poponak of Goldman Sachs on Wednesday, August 28, 2024 at 11:00 a.m. ET. To register and join the webcast, visit this link at least 10 minutes before the event start time. CLICK HERE TO REGISTER: Woodward and Goldman Sachs Fireside Chat August 28 A live web ...

Woodward's (WWD) shares have been performing well on the trading front, with a gain of 22.7% in the past year compared with 13.5% growth of the sub-industry. WWD is a leading designer, manufacturer and service provider of energy control and optimization solutions. The company provides a wide array of products for fuel, combustion, fluid, actuation and electronic applications, which serve the commercial aerospace, business jet, military and energy markets. Solid financial performance is buoying the good run ...

Woodward, Inc. (WWD) has entered into a five-year Maintenance, Repair and Overhaul (MRO) Services agreement with Lufthansa Technik. Woodward will be undertaking MRO services for Lufthansa pertaining to specific components it makes, and this work will be carried out at WWD's facilities in Rockford, IL, and Prestwick, the U.K. Lufthansa Technik, a subsidiary of the Lufthansa Group, focuses on the maintenance and repair of civil aircraft, including commercial, VIP and specialized mission aircraft. They offer s ...

Core Viewpoint - Woodward, Inc. has entered a five-year Maintenance, Repair, and Overhaul (MRO) Services agreement with Lufthansa Technik, enhancing their long-standing partnership and expanding MRO services for Woodward-manufactured components [1][3]. Company Overview - Woodward, Inc. is a global leader in energy control solutions for aerospace and industrial applications, focusing on enabling a cleaner, decarbonized world through innovative systems [4]. - Lufthansa Technik is a leading provider of technical aircraft services, employing over 23,000 people globally and offering a comprehensive range of services for various types of aircraft [5]. Agreement Details - The MRO work will be conducted at Woodward's facilities in Rockford, IL, and Prestwick, UK, supporting both widebody and narrowbody engine components [2][3]. - The agreement signifies a commitment to enhance collaboration and expand services to other aircraft and engine types, aiming for best-in-class MRO service [3].

Financial Data and Key Metrics - Net sales for Q3 2024 were $848 million, a 6% increase year-over-year [22] - Earnings per share for Q3 2024 were $1.63, compared to $1.37 in the previous year [22] - Aerospace segment sales for Q3 2024 were $518 million, an 8% increase from $481 million in the previous year [22] - Industrial segment sales for Q3 2024 were $330 million, a 3% increase from $320 million [23] - R&D expenses for Q3 2024 were $39 million, or 4.6% of sales, compared to $35 million or 4.4% of sales in the previous year [25] - SG&A expenses for Q3 2024 were $74 million, or 8.7% of sales, compared to $65 million or 8.1% of sales [25] - The effective tax rate for Q3 2024 was 16.4%, down from 20% in the previous year [25] - Total net sales for 2024 are expected to be between $3.25 billion and $3.3 billion [26] - Aerospace sales growth for 2024 is expected to be 12% to 14%, with segment earnings at approximately 19% of sales [26] - Industrial sales growth for 2024 is expected to be 11% to 13%, with segment earnings at approximately 17.5% of sales [26] - Adjusted free cash flow for 2024 is expected to be between $300 million and $350 million [26] Business Line Data and Key Metrics - Aerospace segment earnings for Q3 2024 were $102 million, or 19.7% of segment sales, compared to $83 million or 17.3% in the previous year [30] - Commercial OEM sales in Aerospace were up 2%, while commercial aftermarket sales were up 19% [22] - Defense OEM sales were down 4%, while defense aftermarket sales were up 22% [22] - Industrial segment earnings for Q3 2024 were $60 million, or 18.1% of segment sales, compared to $58 million or 18.2% in the previous year [32] - Power generation sales in the Industrial segment increased by 8%, while transportation sales increased by 3%, and oil and gas sales decreased by 6% [24] Market Data and Key Metrics - In Aerospace, strong commercial, domestic, and international passenger traffic continues, though some airlines have discussed overcapacity in the US domestic market [15] - Aerospace aftermarket activity remains healthy due to high utilization of legacy aircraft and engines [18] - In Industrial, rising global power demand is driving increased investment in gas-fired power generation [19] - US natural gas production continues to be pressured by low gas prices, but global demand for natural gas infrastructure remains strong [20] - The marine market remains healthy, with elevated ship-build rates driving OEM engine demand and high utilization rates fueling aftermarket activity [27] Company Strategy and Industry Competition - The company is focused on growth, operational excellence, and innovation, with a technology roadmap aligned with evolving customer requirements [10] - Woodward has invested in R&D and new product development, including advanced low-profile hydraulic controls for Boeing's X-66 aircraft [11] - The company is also investing in component design and materials compatibility for control systems delivering alternative fuels like hydrogen, ammonia, and methanol [12] - Woodward has established a state-of-the-art P2X Research Center in Stuttgart, Germany, to test hydrogen-compatible components for Airbus's Zero-E hydrogen-powered aircraft demonstrator [13] - The company is working on an advanced fuel control system for next-generation aircraft engines, aiming for a 50% reduction in weight and volume compared to current fuel systems [14] Management Commentary on Operating Environment and Future Outlook - The company is monitoring the lack of synchronization across the aerospace supply chain, which is creating part shortages and inventory build-ups [15][18] - Management expects the industrial sales growth to moderate due to lower China on-highway orders, particularly in the natural gas truck business [27][34] - The company remains confident in delivering on the revenue range for Aerospace despite supply chain issues [34] - Management is focused on reducing lead times and improving flow through lean transformation efforts [18] Other Important Information - The company has temporarily in-sourced thousands of parts to allow suppliers breathing room to recover [17] - Woodward has invested in additional rapid complex machining centers to provide more capability and flexibility [17] - The company returned $348 million to stockholders in the form of dividends and share repurchases during the first nine months of 2024 [33] Q&A Session Summary Question: How are commercial aftermarket bookings performing? - The company does not disclose book-to-bill ratios for aftermarket, but bookings are strong, with commercial aftermarket sales up 19% in Q3 2024 [37] Question: What is the outlook for the China natural gas truck business? - The China natural gas truck business is expected to lose money in Q4 2024, with sales projected to be between $10 million and $15 million, resulting in negative margins [40][42] Question: How is the company managing inventory in the aerospace supply chain? - The company is closely monitoring inventory build-ups and working with customers to manage smooth flow through operations [64][71] Question: What is the impact of share repurchases on the share count? - The company repurchased $300 million of stock in Q3 2024, which helps offset dilution from compensation programs and options exercises [46][48] Question: What is the outlook for industrial margins excluding China on-highway? - Excluding China on-highway, industrial margins are expected to be around 14% [41][97] Question: How is the company managing supply chain disruptions in aerospace? - The company is not currently a bottleneck in the aerospace supply chain and is largely on time with deliveries, though some customers have asked to push out deliveries to manage inventory levels [89][90] Question: What is the breakeven point for the China on-highway business? - The breakeven point for the China on-highway business is around $35 million to $40 million in revenue [98][101]