Diversified manufacturer Woodward, Inc. (WWD: Quote) reported Monday a profit for the third quarter that declined from last year, hurt mainly by higher expenses. Both earnings per share and quarterly missed analysts' expectations. The company also maintained its recently lowered outlook for the full-year 2012.
Last week, the company had lowered its guidance for earnings from a range of $2.20 to $2.35 per share, and net sales from between $1.85 billion and $1.95 billion, citing mainly a weaker-than-expected performance at its Aerospace segment amid the macroeconomic uncertainty.
"Operational issues and increased investments in awarded system programs in our Aerospace segment have combined to make this a challenging quarter. Ongoing worldwide economic uncertainty is also pressuring sales growth," Chairman and CEO Thomas Gendron said in a statement.
The Fort Collins, Colorado-based maker of control systems for aerospace, energy and defense markets, reported net income of $28.30 million or $0.40 per share for the third quarter, lower than $36.06 million or $0.51 per share in the prior-year quarter.
On average, eight analysts polled by Thomson Reuters expected earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net sales for the quarter grew 5 percent to $460.24 million from $438.47 million in the same quarter last year, but missed six Wall Street analysts' consensus estimate of $464.59 million by a whisker.
Foreign currency exchange rates had a negative impact of about $8 million on net sales for the quarter.
Aerospace sales for the quarter edged down to $214.47 million, while energy sales increased 10 percent to $245.77 million from the prior-year quarter.
Costs and expenses for the quarter increased to $422.53 million from $387.61 million in the year-ago quarter, including a 33 percent rise in research and development costs, reflecting increased investment on awarded new system programs.
"Woodward's long-term strategic focus has given rise to significant recent success in the marketplace. We believe our dedication to innovation and customer collaboration will continue to increase long-term shareholder value," Gendron added.
Looking ahead to the fiscal year 2012, the company currently continues to expect earnings in a range of $1.90 to $2.00 per share, on projected sales between $1.85 billion and $1.90 billion. Street is currently looking for full-year 2012 earnings of $2.01 per share on annual revenues of $1.87 billion.
WWD closed Monday's regular trading session at $33.26, down $1.08 or 3.15% on a volume of 0.56 million shares. However, the stock pared the loss and gained $1.08 or 2.25% in after hours trade.
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by RTT Staff Writer
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