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Jun 30, 2022
Woodward Q3 2022 Earnings Report
Reported double-digit sales growth driven by Aerospace segment and Industrial segment, but profitability was impacted by inflation and supply chain disruptions.
Key Takeaways
Woodward reported a 10% increase in net sales for the third quarter of fiscal year 2022, reaching $614 million. Aerospace segment sales grew significantly, while Industrial segment sales saw a slight decrease. Net earnings were $39 million, or $0.64 per share, compared to $49 million, or $0.74 per share in the prior year. Profitability was impacted by labor and material inflation, as well as global supply chain and labor disruptions.
Net sales increased by 10% to $614 million, driven by growth in both Aerospace and Industrial segments.
Aerospace segment sales rose by 18% due to increased aircraft utilization and strong OEM build rate demand.
Industrial segment sales decreased by 1% due to weakness in China natural gas truck production and unfavorable foreign currency exchange rates.
Net earnings decreased to $39 million, or $0.64 per share, impacted by labor and material inflation and supply chain disruptions.
Revenue by Segment
Forward Guidance
Woodward revised its FY22 guidance due to continuing global supply chain and labor disruptions and net inflationary impacts.
Positive Outlook
- Total net sales for 2022 are expected to be between $2.35 billion and $2.40 billion.
- Aerospace sales growth is expected to be between 8 and 10 percent.
- Capital expenditures are still expected to be approximately $60 million.
- Adjusted effective tax rate is now expected to be approximately 17 percent.
- Approximately 63 million of fully diluted weighted average shares outstanding.
Challenges Ahead
- Industrial sales are expected to be approximately flat.
- Aerospace segment earnings as a percent of segment net sales are now expected to be approximately 15 percent.
- Industrial segment earnings as a percent of segment net sales are now expected to be between 9 and 10 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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