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Mar 31, 2022
Woodward Q2 2022 Earnings Report
Woodward's financial results were impacted by COVID-19 disruptions and higher inflation, but recovery was seen across most end markets.
Key Takeaways
Woodward reported a 1% increase in net sales to $587 million, but net earnings decreased to $48 million due to COVID-19 related disruptions, supply chain constraints, labor shortages, and higher inflation.
Net sales increased by 1% to $587 million.
Net earnings decreased from $68 million to $48 million.
Aerospace segment sales increased due to recovering passenger traffic and increased aircraft utilization, while defense sales decreased.
Industrial segment sales were positively impacted by increased demand in marine transportation and power generation, as well as a recovering oil and gas market.
Woodward
Woodward
Woodward Revenue by Segment
Revenue by Segment
Aerospace Revenue
CapyFin.comIndustrial Revenue
CapyFin.com Forward Guidance
Woodward has revised its fiscal year 2022 outlook due to greater than anticipated COVID-19 operational related disruptions and net inflationary impacts during the second quarter of fiscal 2022.
Positive Outlook
- Total net sales for 2022 are expected to be between $2.40 and $2.55 billion.
- Aerospace sales growth percentage is still expected to be in the low double digits to mid-teens.
- Industrial sales growth percentage is now expected to be between 5 and 10 percent.
- Aerospace segment earnings as a percent of segment net sales are now expected to be approximately 18 percent.
- Industrial segment earnings as a percent of segment net sales are now expected to be between 10 and 11 percent.
Challenges Ahead
- The adjusted effective tax rate is now expected to be approximately 20 percent.
- Adjusted free cash flow is now expected to be approximately $200 to $230 million.
- Capital expenditures are now expected to be approximately $60 million.
- Adjusted earnings per share is now expected to be between $3.20 and $3.60 based on approximately 64 million of fully diluted weighted average shares outstanding.
- COVID-19 operational related disruptions and net inflationary impacts during the second quarter of fiscal 2022 were greater than anticipated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income