The manufacturer and service provider of energy controls and optimization solutions provided 2015 full year capital expenditure guidance well above estimates, analysts said.
"The catalyst for the downgrade is FY15 capex guidance of $270 million that is well above our prior estimate of $140 million," analysts said, adding, "We would look for a pullback in the shares to get more constructive, or for capex to begin to decline, which should happen in FY16."
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Shares of Woodward closed up 0.45% at $51.81 yesterday.
Separately, TheStreet Ratings team rates WOODWARD INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WOODWARD INC (WWD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."