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Oshkosh (OSK) Q4 Earnings Beat Estimates, Dividend Hiked

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Oshkosh Corporation (OSK - Free Report) reported fourth-quarter 2023 adjusted earnings of $2.56 per share, beating the Zacks Consensus Estimate of $2.17. The bottom line also rose from $1.60 per share recorded in the year-ago period. Consolidated net sales climbed 12% year over year to $2,466.8 million. The top line, however, marginally missed the Zacks Consensus Estimate of $2,468 million.

Oshkosh Corporation Price, Consensus and EPS Surprise

Oshkosh Corporation Price, Consensus and EPS Surprise

Oshkosh Corporation price-consensus-eps-surprise-chart | Oshkosh Corporation Quote

Segmental Details

Access: The segment’s net sales rose 7.1% year over year to $1.15 billion due to enhanced sales volume, pricing strength and $15.9 million in sales related to the Hinowa acquisition. The metric missed our estimate of $1.18 billion.

Operating income rose 39.8% to $162.2 million (accounting for 14.1% of sales), owing to higher sales volume, pricing and an improved product mix. The metric, however, lagged our estimate of $172.4 million.

Defense: The segment’s net revenues increased 7.2% year over year to $586.9 million due to catch-up adjustments on contract awards. The metric missed our estimate of $609 million.

Operating income skyrocketed 205.5% from the prior-year figure to $60.8 million (10.4% of sales), owing to cumulative catch-up adjustments on contract margins. The metric also surpassed our estimate of $34.4 million.

Vocational: The segment’s net sales rose 26.1% year over year to $735.3 million due to the inclusion of sales related to AeroTech’s acquisition and higher pricing. The metric also surpassed our estimate of $672.4 million.

Operating income increased 7% to $44.4 million (accounting for 6% of sales) due to improved pricing. However, the metric missed our estimate of $45.9 million.

Financials

Oshkosh had cash and cash equivalents of $125.4 million as of Dec 31, 2023 compared with $805.9 million as of Dec 31, 2022. The company recorded a long-term debt of $597.5 million, up from $595 million on Dec 31, 2022.

OSK hiked its quarterly cash dividend to 46 cents per share. The dividend will be paid out on Feb 29, 2024, to shareholders of record as of Feb 15, 2024.

2024 Guidance

The company anticipates full-year 2024 sales to be around $10.4 billion. It expects diluted earnings of $9.45 per share and adjusted earnings of $10.25 per share.

Zacks Rank & Other Key Picks

OSK currently carries a Zacks Rank #2 (Buy).

Some other top-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , BYD Company Limited (BYDDY - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) . HMC and BYDDY each sports a Zacks Rank #1 (Strong Buy) and MBGAF carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 4 cents and 5 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for BYDDY’s 2023 sales and earnings suggests year-over-year growth of 36.5% and 70.6%, respectively. The EPS estimate for 2024 has improved 31 cents in the past 30 days.

The Zacks Consensus Estimate for MBGAF’s 2023 sales suggests year-over-year growth of 5.8%. The EPS estimates for 2023 and 2024 have improved by a penny and 30 cents, respectively, in the past 60 days.

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