In the wake of the release of encouraging financial outcomes, the shares of Woodward, Inc. (NASDAQ: WWD) are presently undergoing a noteworthy surge in the US stock exchange early today. As of the last check during this pre-market session, WWD shares exhibited a remarkable increase of 6.50%, soaring to $160.89.
Woodward (WWD) released financial results for its second quarter of fiscal year 2024 after close of the market on Monday. Net sales reported by WWD amounted to $835 million, marking a 16 percent rise from $718 million. Net earnings stood at $98 million, equating to $1.56 per share, for the second quarter of 2024, compared to $36 million, or $0.58 per share.
Adjusted net earnings for the same period were $101 million, or $1.62 per share, in contrast to $62 million, or $1.01 per share. Throughout the quarter, Woodward’s emphasis on operational supremacy continued to drive substantial sales growth and margin expansion.
In the Aerospace domain, both original equipment and post-purchase services displayed robust growth, while its Industrial division benefited from the expansion of Woodward’s China on-highway operations and robust demand in the power generation sector. The enhancement in operational efficiency empowers Woodward to leverage the sturdy demand for its offerings and services across both aerospace and industrial spheres.
The Aerospace sector contributed to the financial narrative with net revenue of $498 million, witnessing a 14 percent rise from $437 million. Notably, commercial aerospace sales experienced a notable surge, propelled by heightened aircraft utilization due to sustained growth in passenger traffic and improved pricing strategies.
Segment earnings for Aerospace amounted to $98 million, contrasting with $73 million. The uptick in segment earnings primarily stemmed from heightened volume and improved pricing strategies. Following suit, the Industrial division reported net sales of $338 million, marking a 20 percent increase.
The upsurge in Industrial division net sales predominantly arose from expansions in transportation, particularly in the on-highway natural gas truck business in China, alongside robust sales in power generation and enhanced pricing strategies, albeit partially offset by reduced oil and gas sales.
Industrial segment earnings stood at $65 million, constituting 19.3 percent of segment net sales. This achievement was fueled by heightened volume, chiefly attributable to amplified demand for WWD’s China on-highway operations, improved pricing strategies, and operational enhancements such as augmented output and efficiency gains.
