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Oshkosh (OSK) to Report Q3 Earnings: Key Predictions for the Stock

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Oshkosh Corporation (OSK - Free Report) is slated to release third-quarter fiscal 2021 results on Jul 29, before market open. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $2.23 per share on revenues of $2.22 billion.

The company delivered better-than-anticipated earnings in the last reported quarter on stellar revenues and operating income from the company’s Access Equipment and Fire & Emergency segments.

Oshkosh topped estimates in all of the preceding four quarters, the average beat being 73.6%. This is depicted in the graph below:

Oshkosh Corporation Price and EPS Surprise

Oshkosh Corporation Price and EPS Surprise

Oshkosh Corporation price-eps-surprise | Oshkosh Corporation Quote

Trend in Estimate Revisions

The Zacks Consensus Estimate for Oshkosh’s fiscal third-quarter earnings per share witnessed upward revision of one cent in the past seven days. Moreover, this compares favorably with the year-ago quarter’s earnings of $1.29 per share, indicating a 72.9% jump, year on year. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year surge of 40.3%.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Oshkosh for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat.

Earnings ESP: Oshkosh has an Earnings ESP of -1.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Oshkosh currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

Oshkosh’s recent strategic acquisition of Pratt Miller has aided the company to navigate to the untapped market of uncrewed ground vehicles and establish a robust foothold there, thereby enhancing its offerings. This is likely to have boosted the company’s top line during the quarter in discussion.

In addition, Oshkosh’s defense arm recently nabbed the 10-year multibillion-dollar contract for developing the Next Generation Delivery Vehicle (NGDV) for the United States Postal Service (USPS). This is anticipated to have fueled the company’s earnings during the June-end quarter.

The Zacks Consensus Estimate for quarterly revenues from the Defense segment is pinned at $660 million, calling for a rise from the $548 million reported in the last-year quarter. In addition, the consensus mark for the quarterly operating income from the segment is pegged at $53 million, indicating an increase from the $40 recorded in the prior-year quarter. This projected upswing is likely to have boosted the company’s revenues during the quarter in consideration.  

Further, the consensus estimate for net sales in the Access Equipment and the Commercial segments for the June-end quarter is pinned at $990 million and $265 million, respectively, suggesting a rise from the $488 million and $248 million recorded in the prior-year quarter. This is likely to have fueled the top line during the to-be-reported quarter.

However, the Zacks Consensus Estimate for quarterly revenues and operating income from Fire & Emergency segment is pegged at $311 million and $43.93 million, respectively, being at par with the reported revenues and lower than the operating profit of $47.6 million of the corresponding quarter last year. This estimated decline in operating income might have hurt the company’s performance during the quarter under review.

Besides, the global chip crunch, which is currently wreaking havoc on the auto industry, escalating raw-material prices, especially steel, as well as surging capital expenditure for development of new products are expected to have dented Oshkosh’s margins during the fiscal third quarter.

Stocks to Consider

Here are a few stocks lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:

Allison Transmission (ALSN - Free Report) has an Earnings ESP of +0.08% and carries a Zacks Rank #3, currently. The company is set to announce second-quarter 2021 results on Jul 29.

Sonic Automotive (SAH - Free Report) has an Earnings ESP of +18.53% and holds a Zacks Rank of 2, at present. The company is scheduled to report quarterly numbers on Jul 29.

Tenneco (TEN - Free Report) has an Earnings ESP of +1.2% and currently carries a Zacks Rank #3. The company will release second-quarter results on Aug 5.