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Oshkosh Shares Fall 2.5% Since Q3 Earnings Beat Expectations

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Shares of Oshkosh Corporation (OSK - Free Report) lost 2.5% since it reported third-quarter 2024 results. It reported adjusted earnings of $2.93 per share, beating the Zacks Consensus Estimate of $2.87. The bottom line, however, declined from $3.04 recorded in the year-ago period. Consolidated net sales climbed 9% year over year to $2.74 billion. The top line also surpassed the Zacks Consensus Estimate of $2.63 billion.

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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 3.4% year over year to $1.36 billion and surpassed the Zacks Consensus Estimate of $1.29 billion due to improved sales volume in North America.

Operating income fell 9.6% to $207.9 million (accounting for 15.2% of sales) due to higher material costs and selling, general and administrative expenses. The metric, however, surpassed the Zacks Consensus Estimate of $196 million.

Defense: The segment’s net revenues increased 13.9% year over year to $540.4 million and surpassed the Zacks Consensus Estimate of $504 million due to higher sales volume of aftermarket parts and Family of Heavy & Medium Tactical Vehicle and NGDV production.

The segment reported an operating income of $11.2 million, which fell 43.1% year over year due to cumulative catch-up adjustments on contract margins. However, the figure surpassed the Zacks Consensus Estimate of $4.43 million.

Vocational: The segment’s net sales rose 17.6% year over year to $814.2 million due to the inclusion of sales related to AeroTech’s acquisition and improved price and organic sales volume. The metric, however, missed the Zacks Consensus Estimate of $825 million.

Operating income surged 89.7% to $99.6 million (accounting for 12.2% of sales) due to enhanced price/cost dynamics but missed the Zacks Consensus Estimate of $106 million.

Financials

Oshkosh had cash and cash equivalents of $160.9 million as of Sept. 30, 2024, compared with $125.4 million as of Dec. 31, 2023. The company recorded a long-term debt of $602.3 million, up from $597.5 million as of Dec. 31, 2023.

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

OSK Revises 2024 Guidance

The company anticipates full-year 2024 sales to be around $10.6 billion, down from the previous expectation of $10.7 billion. It now expects adjusted earnings per share to be $11.35, down from the prior guidance of $11.75.

Zacks Rank & Key Picks

OSK currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Toyota Motor Corporation (TM - Free Report) , Standard Motor Products, Inc. (SMP - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TM’s fiscal 2025 sales suggests year-over-year growth of 3.67%. Earnings per share (EPS) estimates for fiscal 2025 have improved 56 cents in the past 60 days. EPS estimates for fiscal 2026 have improved 20 cents in the past seven days.

The Zacks Consensus Estimate for SMP’s 2024 sales and earnings suggests year-over-year growth of 4.3% and 3.77%, respectively. EPS estimates for 2024 have improved by 2 cents in the past seven days. EPS estimates for 2025 have improved by 2 cents in the past 90 days.

The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 20.91% and 23.63%, respectively. EPS estimates for 2024 and 2025 have improved by 12 cents and 13 cents, respectively, in the past seven days

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