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Q1 Earnings Outperformers: Woodward (NASDAQ:WWD) And The Rest Of The Aerospace Stocks


Adam Hejl /
2024/07/04 9:01 am EDT

Let's dig into the relative performance of Woodward (NASDAQ:WWD) and its peers as we unravel the now-completed Q1 aerospace earnings season.

Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.

The 14 aerospace stocks we track reported a solid Q1; on average, revenues beat analyst consensus estimates by 2%. while next quarter's revenue guidance was 1.8% above consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but aerospace stocks have shown resilience, with share prices up 7.7% on average since the previous earnings results.

Woodward (NASDAQ:WWD)

Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.

Woodward reported revenues of $835.3 million, up 16.3% year on year, topping analysts' expectations by 3.3%. It was a stunning quarter for the company, with an impressive beat of analysts' organic revenue estimates and optimistic earnings guidance for the full year.

"Our focus on operational excellence continues to enable significant sales growth and margin expansion, thanks to the efforts of all our members,” stated Chip Blankenship, Chairman and Chief Executive Officer.

Woodward Total Revenue

Woodward achieved the highest full-year guidance raise of the whole group. The stock is up 15.3% since the results and currently trades at $174.08.

Is now the time to buy Woodward? Access our full analysis of the earnings results here, it's free.

Best Q1: Moog (NYSE:MOG.A)

Responsible for the flight control actuation system integrated in the B-2 stealth bomber, Moog (NYSE:MOG.A) provides precision motion control solutions used in aerospace and defense applications.

Moog reported revenues of $930.3 million, up 11.2% year on year, outperforming analysts' expectations by 6.5%. It was an incredible quarter for the company, with revenue and EPS exceeding analysts' expectations.

Moog Total Revenue

The stock is up 8.3% since the results and currently trades at $170.37.

Is now the time to buy Moog? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Textron (NYSE:TXT)

Listed on the NYSE in 1947, Textron (NYSE:TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.

Textron reported revenues of $3.14 billion, up 3.7% year on year, falling short of analysts' expectations by 4%. It was a weak quarter for the company, with a miss of analysts' organic revenue estimates.

Textron had the weakest performance against analyst estimates in the group. The stock is down 8.3% since the results and currently trades at $86.21.

Read our full analysis of Textron's results here.

Howmet (NYSE:HWM)

Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Howmet reported revenues of $1.82 billion, up 13.8% year on year, surpassing analysts' expectations by 5.1%. It was an impressive quarter for the company, with a solid beat of analysts' revenue estimates and a decent beat of analysts' earnings estimates.

The stock is up 18.8% since the results and currently trades at $79.33.

Read our full, actionable report on Howmet here, it's free.

Curtiss-Wright (NYSE:CW)

Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.

Curtiss-Wright reported revenues of $713.2 million, up 13% year on year, surpassing analysts' expectations by 7.4%. It was a very strong quarter for the company, with a solid beat of analysts' earnings estimates and full-year revenue guidance slightly topping analysts' expectations.

Curtiss-Wright scored the biggest analyst estimates beat among its peers. The stock is up 6% since the results and currently trades at $272.25.

Read our full, actionable report on Curtiss-Wright here, it's free.

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