Benzinga | Jan 29, 2021 10:07AM EST

Woodward's Earnings Outlook

Woodward (NASDAQ:WWD) releases its next round of earnings this Monday, February 01. Here is Benzinga's essential guide to Woodward's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Woodward analysts model for earnings of $0.68 per share on sales of $542.86 million. Woodward earnings in the same period a year ago was $1.1 per share. Quarterly sales came in at $720.36 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 38.18% decrease in the company's earnings. Revenue would be down 24.64% from the same quarter last year. Woodward's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.54 0.36 1.10 1.02EPS Actual 0.75 0.48 1.61 1.10Revenue Estimate 520.52 M 515.89 M 702.09 M 669.63 MRevenue Actual 531.26 M 523.83 M 720.22 M 720.36 M

Stock Performance

Shares of Woodward were trading at $115.2 as of January 28. Over the last 52-week period, shares are down 2.41%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Woodward is scheduled to hold the call at 16:30:00 ET and can be accessed here.