Woodward shares fall on lowered guidance

FORT COLLINS – Shares of Fort Collins-based Woodward Inc. (Nasdaq: WWD) fell this week after the company lowered its full-year guidance.

Woodward shares were down 7.43% in extended trading on Monday, closing at $104.79, and by midafternoon today they were trading at $94.

In Monday’s fiscal third-quarter report, Woodward listed net income of $39 million, or 64 cents a share, compared with $49 million, or 74 cents a share, in the same quarter a year ago. Five analysts surveyed by Zacks Investment Research had forecast earnings of 91 cents a share.

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Third-quarter sales were $614 million, compared with $557 million in the same period in 2021.

Citing “continuing global supply-chain and labor disruptions and net inflationary impacts,” Woodward revised its full-year guidance to between $2.35 billion and $2.4 billion, from its prior forecast of $2.4 billion and $2.55 billion. The analysts surveyed by FactSet had been looking for full-year revenue of $2.416 billion.

Woodward, which designs, manufactures and services control systems and their components for aircraft engines, industrial engines and turbines, power generation and mobile industrial equipment. is seen as a beneficiary of the resumption of Boeing 787 Dreamliner deliveries.

As of Monday, although Woodward shares were off 4.3% for the year, the S&P 500 index had fallen by 13.6%.

Chip Blankenship Jr., Woodward’s chairman and chief executive, said “profitability was impacted by labor and material inflation, as well as greater than expected global supply-chain and labor disruptions. We remain focused on mitigating these impacts to fully realize the ongoing recovery in our end markets.”

Blankenship replaced Tom Gendron, who retired effective May 9 after spending more than 31 years at Woodward, including 17 as CEO. He had originally announced plans to retire in 2020, but complications related to the COVID-19 pandemic compelled him to stay on.