BANGALORE, Nov 20 (Reuters) - Shares of Woodward Governor Co WGOV.O fell 28 percent to a two-year low on Thursday, a day after the maker of energy control systems and components forecast fiscal 2009 earnings below analysts’ consensus view.
The company’s outlook seemed “cautious” and implied a negative-to-up-slightly growth over 2008, said Kevin Dann and Partners analyst Michael Casas, who downgraded the stock to “neutral” from “buy.”
“For a company which is pretty much considered to be a growth-oriented one, it’s not all that much growth,” Casas said, adding that it seemed like Woodward did not know what was going to happen over the next year.
The rapid weakening of the euro and the British pound is having a “pronounced impact” on the outlook for 2009, the company, which serves the aerospace, energy, transportation and military markets, said in a statement on Wednesday.
“It is a risk going forward, whether or not the company’s business jets division could sustain itself given that airlines are following through on some of their announced plans to withdraw less efficient aircraft from service,” William Bremer, an analyst with Maxim Group, said.
For fiscal 2009, the Fort Collins, Colorado-based company forecast earnings between $1.65 and $1.90 a share. [ID:nWNAB5544]
Shares of the company fell 13 percent to $19.21 in afternoon trade on Nasdaq. The stock had touched a low of $15.88 earlier. (Editing by Deepak Kannan)