Woodward, Inc. (NASDAQ:WWD) stock fell 1.58% (As on November 17, 11:37:23 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Earlier in the year, the company streamlined the Aerospace and Industrial segments and added experienced leadership to the company to accelerate the lean transformation. The company integrated the turbine and reciprocating engines business units into one Industrial business. Through the fiscal year-end, the company eliminated approximately 18,000 SKUs. WWD integrated the engine and airframe business units into one Aerospace business. The company brought the hydraulic and fuel systems business units closer together with the combined engineering and program management structure. The company started with one value stream analysis in each of the segments, motors in aerospace and gas flow valves for land-based turbines in the Industrial segment.

WWD in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.33, beating the analysts’ estimates for the adjusted earnings per share by 4.7%, according to the Zacks Consensus Estimate. The company had reported 21 percent rise in the adjusted revenue to $777.1 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $761.5 million. Higher sales in the Aerospace and Industrial segments resulted in this uptick. Aerospace segment sales for the fourth quarter of fiscal 2023 were $455 million compared to $408 million, an increase of 11%. Commercial OEM and aftermarket sales were up 19% and 21%, respectively, driven by higher OEM production rates, continued growth in both domestic and international passenger traffic, increasing aircraft utilization and price realization. Defense OEM sales were down 13% in the quarter, primarily due to lower sales of guided weapons. Defense aftermarket sales were up 18%. Industrial segment sales for the fourth quarter of fiscal 2023 were $322 million compared to $232 million, an increase of 39%. Adjusted free cash flow was $238 million for fiscal 2023 compared to $144 million. Capital expenditures were $77 million for fiscal 2023 compared to $53 million.

Woodward expects full-year revenue in the range of $3.1 billion to $3.25 billion. For fiscal 2024, Aerospace sales growth is expected to be between 10% and 14%, and Aero’s earnings are expected to be 18% to 19% of Aerospace sales. For fiscal 2024, we expect Industrial sales growth between 4% to 6%. Industrial segment earnings are expected to be 13% to 14% of Industrial segment sales.