Woodward, Inc. (NASDAQ:WWD) is a leading company specializing in aerospace and industrial products. It has recently announced its financial results for the first quarter of fiscal year 2025, which align with expectations and set a positive trajectory for the year ahead. The Aerospace segment, in particular, demonstrated strong performance, with growth in sales and margins despite challenges in Boeing product deliveries. This growth was primarily driven by high aircraft utilization, which boosted both commercial and defense aftermarket demand.
The Aerospace segment's robust performance is further highlighted by Woodward's earnings per share of $1.35, surpassing the estimated $1.14, as reported on February 3, 2025. The company's revenue for the quarter was approximately $772.7 million, although it fell short of the estimated $840.8 million. Despite this, the segment's growth was supported by increased demand for smart defense, contributing to strong sales during the quarter.
In the Industrial segment, Woodward experienced broad-based strength in power generation, oil & gas, and marine transportation. However, sales related to China's on-highway natural gas trucks declined. The segment's earnings were impacted by lower volume and an unfavorable mix, but these were partially offset by price realization and favorable foreign currency exchange rates. The company's net income for the quarter was about $87.1 million, with an operating income of approximately $672.8 million.
Woodward reaffirmed its fiscal year 2025 guidance, adjusting the effective tax rate to approximately 19%. The company narrowed its adjusted earnings per share range to $5.85-6.25. The income before tax was reported at around $101.9 million, with an income tax expense of about $14.8 million. This reflects the company's commitment to operational excellence and profitable growth, as emphasized by Chip Blankenship, Chairman and CEO.
On February 4, 2025, Matthew Akers from Wells Fargo set a price target of $205 for Woodward, with the stock price at $184.50 at the time. This represents a price difference of approximately 11.11% from the target. Woodward plans to hold an investor conference call to discuss these results and provide further insights into its financial performance and guidance for fiscal 2025.
