Woodward reports Q4 earnings beat, shares dip after hours

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Woodward reports Q4 earnings beat, shares dip after hours
Credit: © Reuters.

Woodward (NASDAQ: WWD ), Inc., a leader in the aerospace and industrial sectors, recently disclosed its financial results for the fourth quarter of fiscal year 2023. Despite surpassing the consensus estimates with adjusted net earnings of $1.33 per share, a substantial improvement from 84 cents in the same quarter last year, Woodward's shares experienced a 2.1% decline in after-market trading on Thursday.

The company's Aerospace segment demonstrated robust growth with an 11% increase in net sales to $455 million, attributed mainly to heightened commercial OEM and aftermarket sales. However, the Defense OEM sales did not match this performance, showing weakness due to diminished guided weapons sales.

The Industrial segment also reported significant gains with a 39% surge in net sales to $322 million. This leap was complemented by a rise in segmental earnings from $21 million to $54 million compared to the previous year.

Woodward's financial health showed further positive signs as gross margin expanded by 320 basis points to 24.4%, despite a 16.6% hike in total costs and expenses, which tallied up to $679 million. The adjusted EBITDA climbed to $138.9 million, up from $92.9 million the year prior.

As of September 30, Woodward maintained a cash and cash equivalents balance of $137.5 million and carried a long-term debt (less current portions) of $645.7 million. The company generated an impressive $309 million in net cash from operating activities during fiscal 2023, thanks to increased earnings.

In its efforts to enhance shareholder value, Woodward repurchased shares worth $126 million, with $228 million remaining under its authorized two-year stock repurchase program totaling $800 million.

Looking ahead to fiscal 2024, Woodward anticipates net sales ranging from $3.1 billion to $3.25 billion and forecasts free cash flow between $275 million and $325 million. The company expects earnings per share to fall between $4.70 and $5.15.

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