Woodward, Inc. (NASDAQ:WWD), a leader in the aerospace and industrial sectors, stock rose 6.43% (As on November 26, 11:26:37 AM UTC-4, Source: Google Finance) after the company posted better than expected returns for the fourth quarter of FY 24. In Aerospace, both commercial and defense OEM sales increased due to capacity improvements to meet customer demand, and commercial and defense aftermarket sales increased due to continued high aircraft utilization. The Industrial business benefitted from increased sales in power generation and transportation. In Aerospace, the company anticipates increasing revenue and margin expansion driven by continued strength in commercial markets and increased defense activity. In Industrial, the company expects broad-based market strength in power generation and marine transportation, offset by a significant decline in sales related to China on-highway natural gas trucks. Aerospace sales increased by approximately 15%, reaching record levels, with margins expanding by 260 basis points.

Moreover, WWD successfully completed the Loves Park transformation, enhancing MRO services infrastructure and testing capabilities. However, The company’s direct sales to Boeing have been negatively impacted by a work stoppage, leading to temporary production line shutdowns. China on-highway sales declined in the fourth quarter due to local economic challenges, with expectations of continued pressure in 2025. Industrial segment earnings decreased in the fourth quarter due to lower China on-highway volume and unfavorable mix.

WWD in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.41, beating the analysts’ estimates for the adjusted earnings per share of $1.22, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 10 percent to $854.5 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $806.9 billion. The company achieved record annual revenue exceeding $3 billion for the first time

For fiscal 2025, the company expects Sales to be in the range of $3.30 billion – $3.50 billion, Capital Expenditures to be ~$115 million, EPS to be in the range of $5.75 – $6.25 and Free Cash Flow to be in the range of $350 million – $400 million.

In addition, the company expects Aerospace Sales to be               up 6% – 13%, Segment Earnings (% of Sales) to be in the range of 20% – 21%, Industrial Sales to be down 7% – 11% and Segment Earnings (% of Sales) to be in the range of 13% – 14%.