We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Oshkosh's (OSK) Q4 Earnings & Sales Beat Estimates, Down Y/Y
Read MoreHide Full Article
Oshkosh Corporation (OSK - Free Report) reported fourth-quarter fiscal 2020 (ended Sep 30, 2020) adjusted diluted earnings of $1.30 per share, down from the $2.17 recorded in the year-ago period.
However, the fiscal fourth-quarter earnings surpassed the Zacks Consensus Estimate of $1.02. This outperformance stemmed from higher-than-anticipated revenues across all four segments of the company.
For the reported quarter, consolidated net sales declined 18.7% from the prior-year period to $1,784.2 million. Nonetheless, revenues surpassed the Zacks Consensus Estimate of $1,623 million.
For the fiscal fourth quarter, consolidated operating income slipped 37.3%, year over year, to $127.4 million (accounting for 7.1% of sales).
Oshkosh Corporation Price, Consensus and EPS Surprise
For the September-end quarter, net sales in Access equipment plunged 39.4% year over year to $616.2 million. The metric, however, topped the consensus estimate of $491 million. Operating income also tanked 80% from the prior-year quarter to $25.3 million (4.1% of sales). This downside primarily resulted from the impact of lower sales volume and adverse absorption amid a slowdown in production due to the COVID-19 crisis, partially offset by lower spending as a result of temporary cost reductions.
The Defense segment’s net sales increased 6.4% year on year to $606.6 million for the fiscal fourth quarter on higher international sales and increased aftermarket parts shipments to the U.S. government. The sales figure also surpassed the consensus mark of $594 million. Operating income also climbed 7.7% from the prior-year figure to $54.4 million (9% of sales). The upswing was chiefly driven by a favorable product mix and the impact of higher sales volumes. This was negated to some extent by higher favorable cumulative contract adjustments on the receipt of delivery orders in fourth-quarter fiscal 2019, as well as elevated engineering and proposal spending.
Net sales in the Fire & Emergency segment totaled $318.4 million, outpacing the Zacks Consensus Estimate of $313 million. The reported figure, however, decreased 8.1% year over year. This decline was due to the recognition of a number of international fire apparatus sales in the prior-year quarter that were not duplicated in the reported quarter. Nonetheless, the improved price/cost dynamics and better absorption on higher production volumes boosted the segment’s operating income by 5.5% to $52 million (16.3% of sales).
Net sales in the Commercial segment dropped 6.3% from the year-ago figure to $249.2 million in the fiscal fourth quarter on lower refuse collection vehicle demand from refuse collection companies amid the coronavirus pandemic. The figure, nonetheless, surpassed the consensus estimate of $236 million. Notably, the segment’s operating income surged 67.6% from the prior-year period to $31.5 million (12.6% of sales), chiefly on the business interruption insurance settlement of $12.3 million and reduced spending as a result of temporary cost reductions in response to the pandemic.
Financials & Dividend
Oshkosh had cash and cash equivalents of $582.9 million and long-term debt was $817.9 million as of Sep 30, 2020. Net cash provided by operating activities for the year ended Sep 30, 2020 was $327.3 million as compared with the $568.3 million recorded at the end of the prior year.
Oshkosh’s board announced a quarterly cash dividend of 33 cents per share for shareholders. The dividend amount, increased by 10% from the previous dividend, will be paid on Nov 30 to shareholders of record as of Nov 16, 2020.
Fiscal 2020 Highlights
Net sales for fiscal 2020 came in at $6.86 billion, down from the prior fiscal year’s $8.38 billion. Moreover, for the fiscal year, the company registered adjusted earnings per diluted share of $4.72 per share, down 42.5% year over year.
The earnings of fiscal 2020 were mainly hurt due to the impact of lower consolidated sales volumes amid the pandemic, an adverse product mix, adverse absorption as a result of lower production, higher favorable cumulative contract adjustments in fiscal 2019 and the incurrence of after-tax charges related to restructuring actions of $17.9 million.
Fiscal 2021 Outlook
The company has refrained from providing a quantitative outlook for fiscal 2021, as the timing and magnitude of recovery in the Access Equipment segment and some commercial markets continue to be uncertain.
Zacks Rank & Stocks to Consider
Oshkosh currently carries a Zacks Rank #3 (Hold). Shares of the company have depreciated 26.8%, year to date, while the industry has declined 6.1%.
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Image: Bigstock
Oshkosh's (OSK) Q4 Earnings & Sales Beat Estimates, Down Y/Y
Oshkosh Corporation (OSK - Free Report) reported fourth-quarter fiscal 2020 (ended Sep 30, 2020) adjusted diluted earnings of $1.30 per share, down from the $2.17 recorded in the year-ago period.
However, the fiscal fourth-quarter earnings surpassed the Zacks Consensus Estimate of $1.02. This outperformance stemmed from higher-than-anticipated revenues across all four segments of the company.
For the reported quarter, consolidated net sales declined 18.7% from the prior-year period to $1,784.2 million. Nonetheless, revenues surpassed the Zacks Consensus Estimate of $1,623 million.
For the fiscal fourth quarter, consolidated operating income slipped 37.3%, year over year, to $127.4 million (accounting for 7.1% of sales).
Oshkosh Corporation Price, Consensus and EPS Surprise
Oshkosh Corporation price-consensus-eps-surprise-chart | Oshkosh Corporation Quote
Segmental Details
For the September-end quarter, net sales in Access equipment plunged 39.4% year over year to $616.2 million. The metric, however, topped the consensus estimate of $491 million. Operating income also tanked 80% from the prior-year quarter to $25.3 million (4.1% of sales). This downside primarily resulted from the impact of lower sales volume and adverse absorption amid a slowdown in production due to the COVID-19 crisis, partially offset by lower spending as a result of temporary cost reductions.
The Defense segment’s net sales increased 6.4% year on year to $606.6 million for the fiscal fourth quarter on higher international sales and increased aftermarket parts shipments to the U.S. government. The sales figure also surpassed the consensus mark of $594 million. Operating income also climbed 7.7% from the prior-year figure to $54.4 million (9% of sales). The upswing was chiefly driven by a favorable product mix and the impact of higher sales volumes. This was negated to some extent by higher favorable cumulative contract adjustments on the receipt of delivery orders in fourth-quarter fiscal 2019, as well as elevated engineering and proposal spending.
Net sales in the Fire & Emergency segment totaled $318.4 million, outpacing the Zacks Consensus Estimate of $313 million. The reported figure, however, decreased 8.1% year over year. This decline was due to the recognition of a number of international fire apparatus sales in the prior-year quarter that were not duplicated in the reported quarter. Nonetheless, the improved price/cost dynamics and better absorption on higher production volumes boosted the segment’s operating income by 5.5% to $52 million (16.3% of sales).
Net sales in the Commercial segment dropped 6.3% from the year-ago figure to $249.2 million in the fiscal fourth quarter on lower refuse collection vehicle demand from refuse collection companies amid the coronavirus pandemic. The figure, nonetheless, surpassed the consensus estimate of $236 million. Notably, the segment’s operating income surged 67.6% from the prior-year period to $31.5 million (12.6% of sales), chiefly on the business interruption insurance settlement of $12.3 million and reduced spending as a result of temporary cost reductions in response to the pandemic.
Financials & Dividend
Oshkosh had cash and cash equivalents of $582.9 million and long-term debt was $817.9 million as of Sep 30, 2020. Net cash provided by operating activities for the year ended Sep 30, 2020 was $327.3 million as compared with the $568.3 million recorded at the end of the prior year.
Oshkosh’s board announced a quarterly cash dividend of 33 cents per share for shareholders. The dividend amount, increased by 10% from the previous dividend, will be paid on Nov 30 to shareholders of record as of Nov 16, 2020.
Fiscal 2020 Highlights
Net sales for fiscal 2020 came in at $6.86 billion, down from the prior fiscal year’s $8.38 billion. Moreover, for the fiscal year, the company registered adjusted earnings per diluted share of $4.72 per share, down 42.5% year over year.
The earnings of fiscal 2020 were mainly hurt due to the impact of lower consolidated sales volumes amid the pandemic, an adverse product mix, adverse absorption as a result of lower production, higher favorable cumulative contract adjustments in fiscal 2019 and the incurrence of after-tax charges related to restructuring actions of $17.9 million.
Fiscal 2021 Outlook
The company has refrained from providing a quantitative outlook for fiscal 2021, as the timing and magnitude of recovery in the Access Equipment segment and some commercial markets continue to be uncertain.
Zacks Rank & Stocks to Consider
Oshkosh currently carries a Zacks Rank #3 (Hold). Shares of the company have depreciated 26.8%, year to date, while the industry has declined 6.1%.
Some better-ranked stocks in the auto sector are Lear Corporation (LEA - Free Report) , Autoliv Inc (ALV - Free Report) and LCI Industries (LCII - Free Report) , all of which sport a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>