Market Overview

Woodward's Earnings Outlook

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On Thursday, November 19, Woodward (NASDAQ: WWD) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $0.53 and sales around $519.03 million. In the same quarter last year, Woodward announced EPS of $1.22 on revenue of $736.54 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 56.56% decrease in the company's earnings. Sales would be down 29.53% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 0.36 1.10 1.02 1.25
EPS Actual 0.48 1.61 1.10 1.22
Revenue Estimate 515.89 M 702.09 M 669.63 M 745.47 M
Revenue Actual 523.83 M 720.22 M 720.36 M 736.54 M

Stock Performance

Shares of Woodward were trading at $110.31 as of November 17. Over the last 52-week period, shares are down 0.96%. Given that these returns are generally negative, long-term shareholders are probably upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Woodward is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: Earnings