Core Viewpoint - Boeing is a key player in the aerospace sector, but there are other companies like Woodward and Hexcel that may offer better risk/reward opportunities for investors [1][13]. Group 1: Boeing's Challenges and Opportunities - Boeing Defense, Space & Security (BDS) segment is currently facing challenges, with management projecting a potential cash flow positive status by 2026 or 2027, contingent on defense budget decisions [3][5]. - The delivery of the Boeing 777X is expected in 2026, but there are concerns about delays from key customers like Emirates and ongoing issues with the 737 MAX that may hinder cash flow for future projects [4][5]. - Ramping up production of the 737 MAX is viewed as a significant opportunity, with expectations of reaching a delivery rate of 38 per month by the second half of 2025 [6][8]. Group 2: Competitors and Market Position - Woodward and Hexcel are positioned well in the aerospace market, benefiting from increased production at Boeing and Airbus, with both companies trading at attractive cash-flow valuations [9][11]. - Hexcel specializes in advanced lightweight composites that enhance fuel efficiency, while Woodward focuses on technologies that improve engine performance and reduce emissions [10][12]. - Both companies have significant exposure to the next generation of airplanes and are expected to thrive in a favorable market environment due to multiyear backlogs at major manufacturers [9][10].

Core Viewpoint - Woodward, Inc. (WWD) has demonstrated strong stock performance with a 31.2% gain over the past year, outperforming the Aerospace-Defense Equipment industry and the S&P 500 [1] Price Performance - WWD stock is currently trading at $184.59, which is 8.5% below its 52-week high of $201.64 reached on November 26, 2024 [3] - The stock is above its 100 and 200-day moving averages, indicating strong upward momentum and price stability [3] Business Segments - The Aerospace segment is expected to see revenue growth driven by the commercial aftermarket and increased defense activity, despite supply chain challenges [5] - In Q1 fiscal 2025, net sales in the Aerospace segment rose 7% year-over-year, with defense OEM and aftermarket sales increasing by 21% and 8%, respectively [6] - The Industrial segment benefits from solid demand for power generation and investments in gas-powered generation, as well as growth in alternative fuels and refining activities in key regions [8] Growth Drivers - Geopolitical developments are boosting demand for defense products, with Aerospace segment revenues projected to grow by 6-13% in fiscal 2025 [7] - Woodward is investing in technology upgrades and new manufacturing units to enhance efficiency, including a $55 million transformation of its Aerospace Maintenance, Repair, and Overhaul facility [9] Financial Metrics - WWD stock is trading at a forward Price/Earnings ratio of 28.15X, which is lower than the industry average of 36.28X, indicating a potentially attractive investment opportunity [11] - The company returned $449 million to shareholders in fiscal 2024 through dividends and share repurchases, and recently increased its quarterly dividend by 12% to 28 cents per share [12][15] Investment Outlook - The combination of strong performance in Aerospace and Industrial segments, discounted valuation, and robust shareholder returns positions WWD as an attractive long-term investment [16]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Woodward (WWD) - Woodward currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [4] Price Performance - Over the past week, WWD shares have increased by 5.38%, while the Zacks Aerospace - Defense Equipment industry remained flat [6] - In the last month, WWD's shares rose by 9.46%, outperforming the industry's 4.43% [6] - Over the past quarter, WWD shares have increased by 15.14%, and over the last year, they have gained 41.57%, compared to the S&P 500's 1.24% and 22.19% respectively [7] Trading Volume - WWD's average 20-day trading volume is 471,773 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, four earnings estimates for WWD have been revised upwards, while none have been lowered, increasing the consensus estimate from $5.98 to $6.07 [10] - For the next fiscal year, three estimates have moved up, with one downward revision noted [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, WWD is recommended as a stock to consider for near-term investment opportunities [12]

Group 1 - The article highlights twelve actionable investment ideas on tickers that have less coverage, which can include both large caps and small caps [1] - Inclusion criteria for "undercovered" tickers are: market cap greater than $100 million, more than 800 symbol page views in the last 90 days on Seeking Alpha, and fewer than two articles published in the past 30 days [1] - The account will provide a weekly review of these undercovered ideas from analysts [1]

Core Viewpoint - Woodward (WWD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][4]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. Recent Performance and Outlook - For the fiscal year ending September 2025, Woodward is expected to earn $6.07 per share, which represents a -0.7% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Woodward has increased by 2.9%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Woodward to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - The article discusses the performance of Woodward, Inc. (NASDAQ: WWD), noting that the stock has returned 2.9% since the price target was raised to $211 in November 2024 [1] - The investing group, The Aerospace Forum, focuses on identifying investment opportunities within the aerospace, defense, and airline sectors, leveraging data analytics for informed analysis [1] - The analyst has a background in aerospace engineering, which aids in providing context to industry developments and their potential impact on investment theses [1] Group 2 - The article emphasizes that past performance does not guarantee future results, highlighting the importance of careful consideration for investors [2] - It clarifies that no specific investment recommendations are provided, and opinions expressed may not reflect the views of Seeking Alpha as a whole [2] - The analysts contributing to the article may not be licensed or certified by any regulatory body, indicating a diverse range of perspectives [2]

Financial Performance - Consolidated net sales for Q1 FY2025 decreased by $14,005, or 1.8%, to $772,725 compared to $786,730 in Q1 FY2024[134] - Consolidated net earnings for Q1 FY2025 were $87,091, down from $90,044 in Q1 FY2024, representing a decrease of 3.3%[129] - Net cash provided by operating activities was $34,516 for Q1 FY2025, down from $46,789 in Q1 FY2024[163] - Net earnings for Q4 2024 were $87,091 million, a decrease of 3.3% from $90,044 million in Q4 2023[169] - Adjusted net earnings for Q4 2024 were $82,567 million, down 8.1% from $89,811 million in Q4 2023[169] - Adjusted earnings per share for Q4 2024 were $1.35, compared to $1.45 in Q4 2023, reflecting a decrease of 6.9%[169] - EBIT for Q4 2024 was $112,818 million, a decrease of 5.7% from $119,683 million in Q4 2023[171] - Adjusted EBITDA for Q4 2024 was $134,851 million, down from $147,943 million in Q4 2023, representing a decline of 8.8%[172] Segment Performance - Aerospace segment net sales increased to $493,882, while Industrial segment net sales decreased to $278,843, reflecting a decline in volumes[129] - Aerospace segment net sales increased by $33,126, or 7.2%, to $493,882 for Q1 FY2025 compared to $460,756 for Q1 FY2024[147] - Industrial segment net sales decreased by $47,131, or 14.5%, to $278,843 for Q1 FY2025 compared to $325,974 for Q1 FY2024[150] - Aerospace segment earnings increased by $15,723, or 19.9%, to $94,725 for Q1 FY2025 compared to $79,002 for Q1 FY2024[149] - Industrial segment earnings decreased by $26,684, or 39.9%, to $40,197 for Q1 FY2025 compared to $66,881 for Q1 FY2024[151] Cash Flow and Debt - Free cash flow for Q1 FY2025 was $942, down from $4,977 in Q1 FY2024, primarily due to lower earnings[131] - Total outstanding debt as of December 31, 2024, was $902,174, with additional borrowing availability of $734,108 under the revolving credit agreement[132] - Cash and cash equivalents at the end of the period were $283,726, compared to $144,348 at the end of the same period last year[163] - Free cash flow for Q4 2024 was $942 million, significantly lower than $4,977 million in Q4 2023[175] Tax and Expenses - Effective tax rate improved to 14.5% in Q1 FY2025 from 17.9% in Q1 FY2024, primarily due to larger stock-based compensation tax benefits[143] - Adjusted effective tax rate for Q4 2024 was 14.0%, down from 17.7% in Q4 2023[171] - Income tax expense for Q4 2024 was $14,763 million, compared to $19,676 million in Q4 2023, indicating a reduction of 25.1%[171] - Interest expense increased by $905, or 7.9%, to $12,341 in Q1 FY2025 compared to $11,436 in Q1 FY2024[141] - Interest expense for Q4 2024 was $12,341 million, an increase from $11,436 million in Q4 2023[171] - Nonsegment expenses decreased by $4,096 to $22,104 for Q1 FY2025 compared to $26,200 for Q1 FY2024[153] Company Outlook - The company anticipates significant sales and earnings decreases in its China on-highway natural gas truck business due to economic conditions[136] - The company emphasizes the importance of non-U.S. GAAP measures like EBIT and EBITDA for evaluating operational performance[170] Stock Repurchase - The company repurchased $35,473 of its common stock during Q1 FY2025, compared to no repurchases in Q1 FY2024[165] Research and Development - Research and development costs remained stable at $30,207, representing 3.9% of net sales for both Q1 FY2025 and Q1 FY2024[140]

EXHIBIT 99.1 First Quarter Fiscal Year 2025 Company Results Woodward Reports First Quarter Fiscal Year 2025 Results ~Results in Line with Expectations, on Track to Deliver Full-Year Guidance~ FORT COLLINS, Colo., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ: WWD) today reported financial results for its first quarter of fiscal year 2025. All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comp ...

FORT COLLINS, Colo., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD) today announced that its Board of Directors declared a cash dividend of $0.28 per share, an increase of 12% from the prior quarter’s dividend of $0.25 per share. The dividend will be payable on March 6, 2025, for stockholders of record as of February 20, 2025. About Woodward, Inc. Woodward is the global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial ...

~Results in Line with Expectations, on Track to Deliver Full-Year Guidance~ FORT COLLINS, Colo., Feb. 03, 2025 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ: WWD) today reported financial results for its first quarter of fiscal year 2025. All amounts are presented on an as reported (U.S. GAAP) basis unless otherwise indicated. All per share amounts are presented on a fully diluted basis. All comparisons are made to the same period of the prior year unless otherwise stated. All references to years are reference ...