Woodward reports 4Q gains in revenue, earnings

FORT COLLINS – Woodward, Inc. (Nasdaq: WWD) recorded gains in revenue, net sales and net earnings for its fourth quarter ending Sept. 30, the Fort Collins-based company said this week.

Net sales were $640 million, a 12% gain from the $570 million it recorded in the same quarter of 2021. Net earnings were $54 million, or 88 cents per share, compared with $50 million and 76 cents in the fourth quarter of 2021. Adjusted earnings per share were 84 cents, compared with 82 cents in the same period last year.

The revenue figure surpassed the Zacks Equity Research consensus estimate by 2.22%. The company has topped consensus revenue estimates just once over the last four quarters.

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For its 2022 fiscal year, Woodward saw net sales of $2.38 billion, up 6% from $2.25 billion in fiscal 2021. Net earnings were $172 million, or $2.71 per share, compared with net earnings of $209 million, or $3.18 per share, in 2021. Adjusted earnings per share were $2.75, compared with $3.24 in 2021. Net cash provided by operating activities was $194 million, compared with  $465 million in fiscal 2021.

“In fiscal 2022 we experienced strong demand for our products and services, although profitability was impacted by the challenging industry-wide operating environment, including labor and material inflation as well as global supply-chain and labor disruptions,” said Chip Blankenship, chairman and chief executive, in a prepared statement. “As we move into fiscal 2023, we expect solid top-line growth from continued strong customer demand. Sales growth along with the realization of pricing and productivity gains are expected to drive steady margin improvement throughout the year. We are making strategic investments in the business to mitigate supply-chain risk, and we remain focused on operational excellence, talent development, and innovation to create additional value for our shareholders.”

Sales for the fourth quarter were negatively impacted by approximately $24 million from foreign currency exchange rates, the company said. The impact of ongoing global supply-chain and labor disruptions at the end of the fourth quarter of 2022 was approximately $85 million.

Net sales in Woodward’s aerospace segment for the fourth quarter of fiscal 2022 were $408 million, up 8% from $377 million in 2021. Industrial-segment net sales for the fourth quarter of fiscal 2022 were $232 million, up 20% from $193 million last year.

Woodward designs, manufactures and services energy conversion and control solutions for the aerospace and industrial equipment markets.