Woodward (WWD) To Report Q1 Earnings: What's In The Cards?

Woodward, Inc. (NASDAQ:WWD) is scheduled to report first-quarter fiscal 2020 results on Feb 3, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 5.4%. Woodward topped the Zacks Consensus Estimate for earnings thrice in the trailing four quarters, the beat being 17.2%, on average.

The Fort Collins, CO-based company is expected to have recorded higher aggregate revenues on a year-over-year basis, led by strong product portfolio and healthy market fundamentals in the Aerospace segment.

The Zacks Consensus Estimate for net sales at Aerospace, which accounts for the lion’s share of total revenues, is pegged at $408 million. This indicates a rise of 3.8% from the year-ago quarter’s reported figure. The segment is likely to have gained from higher defense spending and increase in aircraft content. The consensus estimate for net sales at the Industrial segment is pegged at $256 million, suggesting a decline of 1.5% from the prior-year quarter’s recorded figure, due to demand-related challenges.

For the December quarter, the consensus estimate for total revenues stands at $667 million, implying an increase of 2.1% from the year-ago quarter’s reported figure. Consequently, adjusted earnings per share are pegged at $1.03, indicating a rise of 7.3% from the prior-year quarter’s reported figure.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Woodward this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Woodward’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at $1.03.

Woodward, Inc. Price and EPS Surprise

Zacks Rank: Woodward currently has a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Microchip Technology Incorporated (NASDAQ:MCHP) is slated to release quarterly results on Feb 4. It has an Earnings ESP of +1.33% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Royal Gold, Inc. (NASDAQ:RGLD) is scheduled to release results on Feb 5. The company has an Earnings ESP of +0.78% and sports a Zacks Rank #1.

NGL Energy Partners LP (NYSE:NGL) has an Earnings ESP of +36.84% and sports a Zacks Rank of 1. The company is set to report results on Feb 6.

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