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 (OSK) Q1 Earnings Fall Short of Estimates, Sales Beat
Read MoreHide Full Article
Oshkosh Corporation (OSK - Free Report) reported first-quarter fiscal 2022 (ended Dec 31, 2021) adjusted earnings of 9 cents per share, which missed the Zacks Consensus Estimate of 19 cents. Higher material and logistics costs and adverse product mix affected the company’s income. The metric also decreased from $1.13 recorded in the year-ago period.
In the quarter, consolidated net sales jumped 13.7% year over year to $1,791.7 million on the back of a rebound in demand in the Access Equipment segment in North America. The top line outpaced the Zacks Consensus Estimate of $1,757 million.
Segmental Details
During the quarter under discussion, net sales in Access Equipment surged 47.9% year over year to $833.5 million on improved market demand in North America. Operating income climbed 29.7% to $32.3 million (accounting for 3.9% of sales) on the back of higher sales volume, improved pricing and manufacturing absorption, a favorable regional sales mix and the absence of restructuring charges.
The Defense segment’s net sales fell 3.4% year over year to $531.5 million, led by lower volumes of Medium and Heavy Tactical Vehicle programs, along with reduced aftermarket parts & services sales. The operating income plunged 79.9% from the prior-year figure to $10.6 million (2% of sales). The downslide resulted from higher material costs, offsetting the benefit of the JLTV order.
Net sales in the Fire & Emergency segment totaled $218.6 million, decreasing 20.2% year over year. Lower aircraft rescue and firefighting vehicle sales volume along with tightened production and delivery of Pierce fire trucks adversely impacted the top line. The segment’s operating income fell 73.5% year over year to $9.3 million (4.3% of sales) amid higher material and manufacturing costs.
Net sales in the Commercial segment increased 7.6% from the year-ago figure to $210.6 million on higher front-discharge concrete mixer volume and higher pricing led by higher input costs. The segment, however, incurred an operating loss of $3.3 million (1.6% of sales), chiefly due to higher material costs and adverse product mix.
Financials, Dividend & Buyback
Oshkosh had cash and cash equivalents of $995.7 million on Dec 31, 2021. The company recorded a long-term debt of $819 million as of Dec 31, 2021.
Oshkosh declared a quarterly cash dividend of 37 cents per share, payable Feb 25, 2022, to shareholders on record as of Feb 11, 2022.
OSK repurchased nearly 1.4 million shares of common stock for $150 million during the three months ended Dec 31.
Outlook
Steered by robust customer demand, significant backlog price realization and improved input costs, the company stated its fiscal 2022 earnings per share expectations in the range of $5.75-$6.75 on projected net sales between $8.0 billion-$8.5 billion.
Zacks Rank & Key Picks
Currently, Oshkosh carries a Zacks Rank #3 (Hold). OSK’s shares have gained 22.8% over the past year against the industry’s 43% decline.
General Motors has an expected earnings growth rate of 2.12% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.1% upward over the past 60 days.
General Motors’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GM pulled off a trailing four-quarter earnings surprise of 46.51%, on average. The stock has also rallied 1.5% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 4.4% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 38.4% over a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Oshkosh (OSK) Q1 Earnings Fall Short of Estimates, Sales Beat
Oshkosh Corporation (OSK - Free Report) reported first-quarter fiscal 2022 (ended Dec 31, 2021) adjusted earnings of 9 cents per share, which missed the Zacks Consensus Estimate of 19 cents. Higher material and logistics costs and adverse product mix affected the company’s income. The metric also decreased from $1.13 recorded in the year-ago period.
In the quarter, consolidated net sales jumped 13.7% year over year to $1,791.7 million on the back of a rebound in demand in the Access Equipment segment in North America. The top line outpaced the Zacks Consensus Estimate of $1,757 million.
Segmental Details
During the quarter under discussion, net sales in Access Equipment surged 47.9% year over year to $833.5 million on improved market demand in North America. Operating income climbed 29.7% to $32.3 million (accounting for 3.9% of sales) on the back of higher sales volume, improved pricing and manufacturing absorption, a favorable regional sales mix and the absence of restructuring charges.
The Defense segment’s net sales fell 3.4% year over year to $531.5 million, led by lower volumes of Medium and Heavy Tactical Vehicle programs, along with reduced aftermarket parts & services sales. The operating income plunged 79.9% from the prior-year figure to $10.6 million (2% of sales). The downslide resulted from higher material costs, offsetting the benefit of the JLTV order.
Net sales in the Fire & Emergency segment totaled $218.6 million, decreasing 20.2% year over year. Lower aircraft rescue and firefighting vehicle sales volume along with tightened production and delivery of Pierce fire trucks adversely impacted the top line. The segment’s operating income fell 73.5% year over year to $9.3 million (4.3% of sales) amid higher material and manufacturing costs.
Net sales in the Commercial segment increased 7.6% from the year-ago figure to $210.6 million on higher front-discharge concrete mixer volume and higher pricing led by higher input costs. The segment, however, incurred an operating loss of $3.3 million (1.6% of sales), chiefly due to higher material costs and adverse product mix.
Financials, Dividend & Buyback
Oshkosh had cash and cash equivalents of $995.7 million on Dec 31, 2021. The company recorded a long-term debt of $819 million as of Dec 31, 2021.
Oshkosh declared a quarterly cash dividend of 37 cents per share, payable Feb 25, 2022, to shareholders on record as of Feb 11, 2022.
OSK repurchased nearly 1.4 million shares of common stock for $150 million during the three months ended Dec 31.
Outlook
Steered by robust customer demand, significant backlog price realization and improved input costs, the company stated its fiscal 2022 earnings per share expectations in the range of $5.75-$6.75 on projected net sales between $8.0 billion-$8.5 billion.
Zacks Rank & Key Picks
Currently, Oshkosh carries a Zacks Rank #3 (Hold). OSK’s shares have gained 22.8% over the past year against the industry’s 43% decline.
Some better-ranked players in the auto space are General Motors (GM - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors has an expected earnings growth rate of 2.12% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.1% upward over the past 60 days.
General Motors’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GM pulled off a trailing four-quarter earnings surprise of 46.51%, on average. The stock has also rallied 1.5% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 4.4% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 38.4% over a year.