D.A. Davidson Reiterates Buy Rating, $50 PT on Woodward

In a report published Wednesday, D.A. Davidson & Co. reiterated its Buy rating and $50.00 price target on Woodward

. D.A. Davidson noted, “Woodward reported EPS of $0.39, below our estimate of $0.51 and the Street mean of $0.46. EPS benefitted from a ~$0.02 tax rate tailwind. Additionally one-time expenses associated with an acquisition were also ~$0.02 ($1.7 million). Revenues were roughly flat year-over-year at $408 million vs. our estimate of $475 million and the Street mean of $434 million. Gross margins fell 120bp year-over-year and 150bp sequentially to 29.1%. Free cash flow for the quarter was $10 million or ~$0.14 per share as capex increased to support future growth.” Woodward closed on Tuesday at $39.18.