Yahoo Movies What Do Analysts Think About Woodward Inc’s (NASDAQ:WWD) Growth?
On 30 September 2018, Woodward Inc (NASDAQ:WWD) announced its earnings update. Overall, analysts seem extremely confident, with profits predicted to ramp up by an impressive 57% next year, against the past 5-year average growth rate of 3.7%. Currently with trailing-twelve-month earnings of US$180m, we can expect this to reach US$282m by 2019. Below is a brief commentary on the longer term outlook the market has for Woodward. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Check out our latest analysis for Woodward
What can we expect from Woodward in the longer term?
The 7 analysts covering WWD view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of WWD’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2021, WWD’s earnings should reach US$356m, from current levels of US$180m, resulting in an annual growth rate of 24%. EPS reaches $5.67 in the final year of forecast compared to the current $2.93 EPS today. With a current profit margin of 7.8%, this movement will result in a margin of 12% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Woodward, I’ve put together three pertinent aspects you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Woodward worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Woodward is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Woodward? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
