Earnings Beat: Woodward, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Woodward, Inc. (NASDAQ:WWD) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$884m, some 5.8% above estimates, and statutory earnings per share (EPS) coming in at US$1.78, 20% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the eleven analysts covering Woodward are now predicting revenues of US$3.44b in 2025. If met, this would reflect a modest 2.6% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$6.48, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$3.40b and earnings per share (EPS) of US$6.32 in 2025. So the consensus seems to have become somewhat more optimistic on Woodward's earnings potential following these results.

Check out our latest analysis for Woodward

The consensus price target rose 5.1% to US$204, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Woodward analyst has a price target of US$229 per share, while the most pessimistic values it at US$167. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Woodward shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Woodward's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2025 being well below the historical 7.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Woodward.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Woodward following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Woodward's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Woodward going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Woodward's balance sheet, and whether we think Woodward is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.