Active Stock’s Momentum – Woodward Inc (NASDAQ:WWD)

Woodward Inc (NASDAQ:WWD) began its trading session at $69.21 on Wednesday. During the most recent trading session the minimum price at which share price traded, recorded at $69.12 and hit to max level of $72.28. The company rose +0.32 points or 0.47%. The company finished it trading session at $69.12. It traded total volume of 213,934 shares lower than the average volume of 254,043 shares.

Woodward, Inc. (WWD) recently stated financial results for its second quarter of fiscal year 2017 ending March 31, 2017.

Second Quarter Fiscal 2017 Highlights:

Net sales for the second quarter of 2017 were $500.0M, contrast to $479.0M for the second quarter of last year.

Net earnings for the second quarter of 2017 were $38.0M, or $0.60 per share, contrast to $41.0M, or $0.65 per share, in the second quarter of 2016.

Aerospace segment sales grew 10 percent and earnings raised 15 percent, while Industrial segment sales and earnings reduced 5 percent and 12 percent, respectively, as contrast to the prior year quarter.

Net cash generated from operating activities for the first half of fiscal 2017 was $130.0M, contrast to $362.0M for the prior year. Free cash flow1 was $87 million for the first half of 2017, contrast to $262.0M for the same period of the prior year. The prior year included $250 million of proceeds from the formation of the joint venture with GE.

“Our Aerospace segment performance was strong this quarter and we are starting to reap the benefits from planned investments to increase market share on next generation aircraft programs,” said Thomas A. Gendron, Chairman and Chief Executive Officer. “While certain areas of the Industrial segment are showing signs of recovery, we are still experiencing challenges. Overall, we remain well-positioned to achieve our fiscal year expectations.”

Company Results:

Net sales for the second quarter of fiscal 2017 were $500.0M, contrast to $479.0M for the second quarter of fiscal 2016.

The effective tax rate for the second quarter of 2017 was 24.10 percent, contrast to 24.90 percent for the second quarter of 2016. The full year effective tax rate is now predictable to be about 22 percent.

Net earnings for the second quarter of 2017 were $38.0M, or $0.60 per share, contrast to $41 million, or $0.65 per share in the second quarter of 2016. EBIT was $57 million for the second quarter of 2017, contrast to $60 million for the second quarter of 2016.

Segment Results:

Aerospace

Aerospace segment net sales for the second quarter of fiscal 2017 were $321.0M, contrast to $291.0M for the prior year second quarter. Segment earnings for the second quarter of 2017 were $58 million, contrast to $51 million for the same quarter a year ago. Segment earnings as a percent of segment net sales were 18.2 percent this quarter, contrast to 17.4 percent in the same quarter of the prior year.

Aerospace OEM and aftermarket sales were strong in both defense and commercial markets. Defense OEM sales improved as a result of strength in smart weapons, with aftermarket driven by maintenance needs. Commercial aerospace benefitted from next generation aircraft programs and initial provisioning. Business jets and rotorcraft remained weak. The improvement in segment earnings was mainly attributable to the higher sales volume.

Industrial

Industrial segment net sales for the second quarter of fiscal 2017 were $180.0M, contrast to $189.0M in last year’s second quarter. Segment earnings for the second quarter of 2017 were $17 million, contrast to $19 million in the second quarter a year ago. Segment earnings as a percent of segment net sales were 9.5 percent in the second quarter of 2017, contrast to 10.3 percent in the same quarter of the prior year.

Industrial gas turbine aftermarket sales and wind turbine converter sales declined this quarter, contrast to the prior year. Sales of natural gas fuel systems applied on trucks in Asia and reciprocating engine power generation applications were up in the quarter, contrast to the prior year. The decrease in segment earnings was mainly because of the lower sales volume and planned increase in new facility costs, which was partially offset by savings associated with noteworthy cost reduction programs formerly implemented.

Nonsegment

Nonsegment expenses totaled $19.0M for the second quarter of fiscal 2017, contrast to $10 million for the same quarter last year. The increase was mainly the result of the timing of recognition of stock-based compensation expense.

Cash Flow and Financial Position:

Net cash generated from operating activities for the first half of fiscal 2017 was $130.0M, contrast to $362.0M for the prior year. Free cash flow was $87.0M for the first half of 2017, contrast to $262.0M for the same period of the prior year. The prior year included $250.0M of proceeds from the formation of the joint venture with GE. Payments for property, plant, and equipment for the first six months of fiscal 2017 were $43.0M, contrast to $99.0M for the first six months of fiscal 2016.

Total debt was $696.0M at March 31, 2017, contrasts to $727.0M at September 30, 2016. The ratio of debt-to-debt-plus-equity was 35.70 percent at March 31, 2017, contrast to 37.50 percent at September 30, 2016.

Outlook:

Overall, fiscal year 2017 guidance is unchanged. Net sales are predictable to increase by about 4 to 6 percent from the prior year and earnings per share are predictable to be between $2.95 and $3.25.

WWD has the market capitalization of $4.25B and its EPS growth ratio for the past five years was 8.60%. The return on assets ratio of the Company was 7.70% while its return on investment ratio was 10.00%. Price to sales ratio was 2.10 while 73.30% of stock was owned by Institutional investors. The Company earned $201.60 million in prior twelve months.

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