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]

The reported revenue compares to the Zacks Consensus Estimate of $850.98 million, representing a surprise of -0.39%. The company delivered an EPS surprise of +10.88%, with the consensus EPS estimate being $1.47. Here is how Woodward performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Woodward (WWD) reported $847.69 million in revenue for the quarter ended June 2024, representing a yearover-year increase of 5.9%. EPS of $1.63 for the sam ...

CAUTIONARY STATEMENT 2 | YOY OPERATING EARNINGS IMPROVEMENT $72M YTD capital expenditures $348M YTD returned to shareholders through dividends and share repurchases FY 23 FY 24 EARNINGS PER SHARE (EPS) 4 | WWD Commercial OEM Sales 19% GROWTH ↑ High aircraft utilization Q3'FY23 to Q3'FY24 Q3'FY23 to Q3'FY24 DEFENSE AFTERMARKET 7 | 7 © WOODWARD, INC. PROPRIETARY FY 23 FY 24 8 | ↑6% DECLINE POWER GENERATION ↑ 3% GROWTH WWD Oil & Gas Sales 10 | 1 0 © WOODWARD, INC. PROPRIETARY FY 23 FY 24 11 | © WOODWARD, INC. ...

Woodward (WWD) came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 10.88%. A quarter ago, it was expected that this maker of cockpit controls and other equipment for the defense and aerospace markets would post earnings of $1.28 per share when it actually produced earnings of $1.62, deliv ...

FORT COLLINS, Colo., July 29, 2024 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD) today reported financial results for its third quarter of fiscal year 2024. 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 references to the Company's fiscal year unless otherwise stated. Third Quarter Overvie ...

FORT COLLINS, Colo., July 29, 2024 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD) today reported financial results for its third quarter of fiscal year 2024. Third Quarter Overview "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 benef ...

Wall Street analysts expect Woodward (WWD) to post quarterly earnings of $1.47 per share in its upcoming report, which indicates a year-over-year increase of 7.3%. Revenues are expected to be $850.98 million, up 6.3% from the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 1.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a c ...

Rotary actuators are essential devices in industrial, commercial and residential applications, converting rotational motion into precise and controlled mechanical action. Unlike linear actuators, they generate circular movement. In aerospace, they control aircraft flaps, ailerons and landing gear, demonstrating their strength and reliability under extreme conditions. Woodward, in collaboration with Boeing, has started work on these actuators, aiming for production by 2026 and test flights by 2028. Headquart ...

Woodward (WWD) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the ...

FORT COLLINS, Colo., July 22, 2024 (GLOBE NEWSWIRE) -- Woodward, Inc. (NASDAQ:WWD), a global leader in energy control solutions for aerospace and industrial applications, announced it has been selected to provide rotary actuation solutions for the NASA and Boeing Transonic Truss-braced Wing (TTBW) X-66A aircraft demonstrator. The pioneering aircraft concept incorporates very long and thin strut-braced wings to add lift and reduce drag, with potential to dramatically increase fuel efficiency. The rotary actu ...