Woodward Company Nasdaq: World Water Day It manufactures critical control systems and components for the commercial and industrial aviation and defense industries. Modern commercial passenger aircraft can contain up to five million components, while military aircraft can contain up to two million components. This leading aerospace company provides critical components, from engine and power systems to sensors and missile guidance, ensuring consistent, uninterrupted performance.
Some of Woodward’s notable clients include Raytheon Technologies New York Stock Exchange: RTX, Caterpillar company New York Stock Exchange: CAT, Electronic public New York Stock Exchange: GE, Baker Hughes Company Nasdaq: BKR, Boeing Company NYSE: B.S Airbus.
Despite challenges in its industrial segment, Woodward achieved record growth in fiscal 2024 driven by strong aviation sales. The stock is now forming a technical pattern that may indicate potential price action in the future, providing new opportunities for investors.
Record sales growth in 2024
Woodward today
(As of 12/31/2024 at 05:19 PM ET)
- 52 week range
- $131.12
▼
$201.64
- Dividend yield
- 0.60%
- P/E ratio
- 27.69
- Price target
- $187.44
Woodward achieved record fiscal revenues for the full year of 2024, growing 14% year over year (year-over-year) and exceeding $3 billion. It delivered 45% year-over-year EPS growth to $6.11, 61% net earnings growth to $373 million, and 46% year-over-year adjusted free cash flow growth to $348 million.
EPS for the fourth quarter of 2024 was $1.41, beating analysts’ consensus estimates by 15 cents. Revenue rose 10% year-over-year to $855 million, beating forecast estimates of $810.39 million.
Aviation sales grew by double digits
Its commercial aviation original equipment sales grew 13% year-over-year, supported by strong demand despite supply chain challenges, while commercial aftermarket sales increased 17%, supported by higher passenger traffic and increased aircraft utilization. Defense aerospace original equipment sales increased 10%, driven by improved guided weapons shipments and ground vehicle growth, and defense aftermarket sales increased 21% due to better operational execution and supply chain stability. Overall, fourth-quarter aviation sales rose 22% to $553 million, boosting earnings 25% to $106 million and expanding margins 200 basis points to 19.2%.
Industrial sales decline due to oil and gas
Woodward’s industrial sales fell 6% year over year to $302 million, while profits fell 30% to $38 million, causing margins to decline 430 basis points to 12.6%. Industrial markets consist of three main sectors: power generation, transportation, and oil and gas. The power generation segment saw sales growth of 11% year-on-year driven by strong global power demand driven by data centers and associated backup power. This has also caused increased demand to support network stability. The transportation sector witnessed a growth of 22% year-on-year due to a healthy global maritime market with the availability of shipyards with high production capacity.
There has been a growing demand for alternative fuels throughout the marine industry. However, demand for heavy trucks has been weak in China due to the weak domestic economy and narrow fuel price margin. Oil and gas sector sales decreased by 3% year-on-year due to a decline in overall demand for oil and gas. The outlook remains positive regarding potential investments in refining and petrochemical activities in China, India and the Middle East.
Full year 2025 guidance
Woodward stock forecast today
$187.44
12.63% upHe catches
Based on 9 analyst ratings
| High expectations | $228.00 |
|---|---|
| Average expectations | $187.44 |
| Low expectations | $148.00 |
Woodward stock forecast details
CEO Chip Blankenship was upbeat during the conference call. He pointed out that both sectors, aviation and industry, achieved strong performance. Aviation segment sales rose 15% year-on-year to record levels with margins expanding by 260 basis points. Industrial sales continue to reach a record high that was boosted by its on-highway production line in China, which led to an all-time high EPS and increased free cash flow by more than $100 million year-over-year. He pointed out that the work stoppage negatively affected its direct sales at Boeing, but the company transformed by reallocating resources to other regions.
For the full year 2025, the company expects:
-
EPS: Between US$5.75 and US$6.25 (in line with consensus estimate of US$5.85)
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profit: Between $3.3 and $3.5 billion (consistent with consensus estimates of $3.38 billion)
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Free cash flow: Between 350 and 450 million dollars
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Aerospace Sales: An increase of 6% to 13% year-on-year
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Industrial sales: A decrease of 7.5% to 11% year-on-year
The emergence of artificial intelligence and other computing needs is driving increased demand for data center power. “Woodward is well positioned to seize this opportunity, which includes control, operation and fuel metering systems for both base load natural gas and backup diesel applications,” notes Blankenship.
WWD stock is forming a symmetrical triangle pattern
A symmetrical triangle is formed by a falling (bearish) upper trendline resistance which converges with a rising (bullish) lower trendline support at the apex. A breakout occurs when the stock rises above the upper trend line resistance. A breakout occurs when a stock breaks below the lower trend line support. A breakout or breakdown becomes prominent when the stock approaches the high point as the channel narrows.
WWD formed bearish upper trend line resistance near $187.44, while bullish lower trend line support began at $145.80. A strong Q4 earnings report sparked a gap that peaked at $201.64 and sparked a gap and poor selling reaction that caused WWD to return to the symmetrical triangle range. Shares slid across the upper trend line to retest the lower trend line and daily flat VWAP support at $168.83. The daily Relative Strength Index (RSI) profile also stalled at the 43 range. WWD will either fall below the lower trend line from here or retest the upper trend line, eventually creating a breakout as it approaches the high point. Fibonacci Pullback support (Fib) levels are located at $161.66, $152.81, $145.80, and $140.29.
The average consensus price target for WWD is $187.44, which means an increase of 10.32%, The analyst’s highest price target is at $228.00. It has four analyst ratings of Buy and five Hold ratings. The stock has a short interest of 1.73%.
Bullish investors could consider using cash-secured puts at Fibonacci retracement support levels to buy the dip. If the stock is set, writing the covered call at rising Fibonacci levels implements the wheel strategy to gain additional income while collecting an annual dividend yield of 0.59%.
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