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Oshkosh (OSK) Up 1.3% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Oshkosh (OSK - Free Report) . Shares have added about 1.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oshkosh due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Oshkosh reported second-quarter 2023 adjusted earnings of $2.69 per share, beating the Zacks Consensus Estimate of $1.57. The outperformance can be largely attributed to double-digit operating margins in the Access and Vocational segments. The bottom line also rose from 41 cents recorded in the year-ago period. In the quarter under review, consolidated net sales climbed 16.8% year over year to $2,413 million. The top line surpassed the Zacks Consensus Estimate of $2,251 million.
Segmental Details
Access: The segment’s net sales rose 35.9% year over year to $1,328 million. The metric also surpassed our estimate of $1,102.4 million due to higher-than-expected sales volume and pricing strength.
Operating income skyrocketed 191.2% to $211.7 million (accounting for 15.9% of sales) owing to higher sales volume and pricing. The metric also came ahead of our estimate of $56 million.
Defense: The segment’s net revenues tailed off 7.6% year over year to $498.1 million due to lower Joint Light Tactical Vehicle program volume. The metric also missed our estimate of $547.1 million.
Operating income rose 62.5% from the prior-year figure to $6.3 million (1.3% of sales), owing to lower unfavorable cumulative catch-up adjustments on contract margins. The metric significantly lagged our estimate of $40.2 million.
Vocational: The segment’s net sales rose 6.5% year over year to $587.5 million on improved sales volume and higher pricing. The metric also surpassed our estimate of $526.2 million.
Operating income increased 52% to $60.5 million (accounting for 10.3% of sales) due to higher pricing and an improved product mix.
Financials
Oshkosh had cash and cash equivalents of $355.5 million as of Jun 30, 2023. The company recorded a long-term debt of $597.3 million, essentially flat from 2022-end levels.
Oshkosh declared a quarterly cash dividend of 41 cents per share. The dividend will be paid out on Aug 31, 2023, to shareholders of record as of Aug 17, 2023.
Updated 2023 Guidance
The company estimates full-year 2023 sales to be around $9.5 billion, up from the previous estimate of $8.65 billion. It expects adjusted earnings of $8 per share, up from the previous estimate of $6 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 32.7% due to these changes.
VGM Scores
At this time, Oshkosh has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Oshkosh has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Oshkosh (OSK) Up 1.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Oshkosh (OSK - Free Report) . Shares have added about 1.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Oshkosh due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Oshkosh Q2 Earnings Beat Estimates, Guidance Raised
Oshkosh reported second-quarter 2023 adjusted earnings of $2.69 per share, beating the Zacks Consensus Estimate of $1.57. The outperformance can be largely attributed to double-digit operating margins in the Access and Vocational segments. The bottom line also rose from 41 cents recorded in the year-ago period. In the quarter under review, consolidated net sales climbed 16.8% year over year to $2,413 million. The top line surpassed the Zacks Consensus Estimate of $2,251 million.
Segmental Details
Access: The segment’s net sales rose 35.9% year over year to $1,328 million. The metric also surpassed our estimate of $1,102.4 million due to higher-than-expected sales volume and pricing strength.
Operating income skyrocketed 191.2% to $211.7 million (accounting for 15.9% of sales) owing to higher sales volume and pricing. The metric also came ahead of our estimate of $56 million.
Defense: The segment’s net revenues tailed off 7.6% year over year to $498.1 million due to lower Joint Light Tactical Vehicle program volume. The metric also missed our estimate of $547.1 million.
Operating income rose 62.5% from the prior-year figure to $6.3 million (1.3% of sales), owing to lower unfavorable cumulative catch-up adjustments on contract margins. The metric significantly lagged our estimate of $40.2 million.
Vocational: The segment’s net sales rose 6.5% year over year to $587.5 million on improved sales volume and higher pricing. The metric also surpassed our estimate of $526.2 million.
Operating income increased 52% to $60.5 million (accounting for 10.3% of sales) due to higher pricing and an improved product mix.
Financials
Oshkosh had cash and cash equivalents of $355.5 million as of Jun 30, 2023. The company recorded a long-term debt of $597.3 million, essentially flat from 2022-end levels.
Oshkosh declared a quarterly cash dividend of 41 cents per share. The dividend will be paid out on Aug 31, 2023, to shareholders of record as of Aug 17, 2023.
Updated 2023 Guidance
The company estimates full-year 2023 sales to be around $9.5 billion, up from the previous estimate of $8.65 billion. It expects adjusted earnings of $8 per share, up from the previous estimate of $6 per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 32.7% due to these changes.
VGM Scores
At this time, Oshkosh has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Oshkosh has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.