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Shares of Oshkosh Corporation (OSK - Free Report) have gained roughly 21.4% in a day’s trading, following its fourth-quarter fiscal 2018 earnings release. During the quarter under review, the company recorded adjusted earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.45. In the year-ago quarter, adjusted earnings were $1.38. Net income was 151.3 million compared with $93.5 million in fourth-quarter fiscal 2017.
In fiscal 2018, Oshkosh generated net sales of $7.7 billion while adjusted earnings were $6.36 per share.
In the reported quarter, net sales rose 4.8% to $2.06 billion from $1.96 billion a year ago. The figure was almost in line with the Zacks Consensus Estimate of $2 billion. The rise in sales was primarily due to an increased demand for access equipment, partly offset by lower-than-anticipated sales in the defense segment.
Oshkosh Corporation Price, Consensus and EPS Surprise
During the fourth quarter of fiscal 2018, consolidated operating income increased 49.7% to $201.4 million (9.8% of sales) compared with $134.5 million (6.9% of sales).
Segmental Details
Net sales for Access equipment increased 27.2% to $1.1 billion, driven by an enhanced demand for both aerial work platforms and telehandlers. Operating income increased to $127 million (12% of sales). The rise was due to higher sales volume, improved price realization and lower restructuring-related expenses.
Defense segment’s net sales decreased 22.2% to $464.6 million due to the absence of international Mine Resistant Ambush Protected-All Terrain Vehicle (M-ATV) sales, partly offset by increased sales to the U.S. government. Operating income decreased 14.5% to $62.4 million (13.4% of sales).
Net sales for the Fire & Emergency segment rose 2.1% to $284 million. The rise was driven by improved pricing. Operating income increased 14.7% to $40 million (14% of sales) due to increased pricing and positive extended warranty experience, partly offset by higher material expenses.
Net sales for the Commercial segment decreased 2.2% to $254 million. The sales figure was impacted by lower package sales. Operating income increased 52.6% to $18 million (7% of sales).
Financial Details
Oshkosh had cash and cash equivalents of $454.6 million as of Sep 30, 2018, compared with $447 million as of Sep 30, 2017. The company’s long-term debt was $818 million at the end of fiscal 2018 compared with $808 million recorded on the prior fiscal.
For the fiscal ended on Sep 30, 2018, Oshkosh’s net cash provided by operating activities was $436.3 million compared with $246.5 million a year ago.
Share Buyback Update
During the reported quarter, the company bought shares for $82.5 million and completed repurchasing 1,162,733 units of common stock.
Dividend Announcement
Oshkosh’s board declared a quarterly cash dividend of 27 cents per share to its shareholders. The cash dividend has been increased 12.5% from the earlier payout of 24 cents. The amount will be paid on Dec 3 to shareholders as of Nov 19, 2018.
Fiscal 2019 Outlook
For fiscal 2019, the company anticipates consolidated sales of $7.85-$8.15 billion. Further, adjusted diluted earnings per share are projected to be $6.50-$7.25 while operating income is expected to be between $640 million and $710 million.
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have moved up 17.1%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 10.1%.
Cooper Tire has an expected long-term growth rate of 4%. Shares of the company have risen 34% over the past six months.
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Oshkosh (OSK) Tops Q4 Earnings Estimates, Issues '19 View
Shares of Oshkosh Corporation (OSK - Free Report) have gained roughly 21.4% in a day’s trading, following its fourth-quarter fiscal 2018 earnings release. During the quarter under review, the company recorded adjusted earnings of $1.78 per share, beating the Zacks Consensus Estimate of $1.45. In the year-ago quarter, adjusted earnings were $1.38. Net income was 151.3 million compared with $93.5 million in fourth-quarter fiscal 2017.
In fiscal 2018, Oshkosh generated net sales of $7.7 billion while adjusted earnings were $6.36 per share.
In the reported quarter, net sales rose 4.8% to $2.06 billion from $1.96 billion a year ago. The figure was almost in line with the Zacks Consensus Estimate of $2 billion. The rise in sales was primarily due to an increased demand for access equipment, partly offset by lower-than-anticipated sales in the defense segment.
Oshkosh Corporation Price, Consensus and EPS Surprise
Oshkosh Corporation Price, Consensus and EPS Surprise | Oshkosh Corporation Quote
During the fourth quarter of fiscal 2018, consolidated operating income increased 49.7% to $201.4 million (9.8% of sales) compared with $134.5 million (6.9% of sales).
Segmental Details
Net sales for Access equipment increased 27.2% to $1.1 billion, driven by an enhanced demand for both aerial work platforms and telehandlers. Operating income increased to $127 million (12% of sales). The rise was due to higher sales volume, improved price realization and lower restructuring-related expenses.
Defense segment’s net sales decreased 22.2% to $464.6 million due to the absence of international Mine Resistant Ambush Protected-All Terrain Vehicle (M-ATV) sales, partly offset by increased sales to the U.S. government. Operating income decreased 14.5% to $62.4 million (13.4% of sales).
Net sales for the Fire & Emergency segment rose 2.1% to $284 million. The rise was driven by improved pricing. Operating income increased 14.7% to $40 million (14% of sales) due to increased pricing and positive extended warranty experience, partly offset by higher material expenses.
Net sales for the Commercial segment decreased 2.2% to $254 million. The sales figure was impacted by lower package sales. Operating income increased 52.6% to $18 million (7% of sales).
Financial Details
Oshkosh had cash and cash equivalents of $454.6 million as of Sep 30, 2018, compared with $447 million as of Sep 30, 2017. The company’s long-term debt was $818 million at the end of fiscal 2018 compared with $808 million recorded on the prior fiscal.
For the fiscal ended on Sep 30, 2018, Oshkosh’s net cash provided by operating activities was $436.3 million compared with $246.5 million a year ago.
Share Buyback Update
During the reported quarter, the company bought shares for $82.5 million and completed repurchasing 1,162,733 units of common stock.
Dividend Announcement
Oshkosh’s board declared a quarterly cash dividend of 27 cents per share to its shareholders. The cash dividend has been increased 12.5% from the earlier payout of 24 cents. The amount will be paid on Dec 3 to shareholders as of Nov 19, 2018.
Fiscal 2019 Outlook
For fiscal 2019, the company anticipates consolidated sales of $7.85-$8.15 billion. Further, adjusted diluted earnings per share are projected to be $6.50-$7.25 while operating income is expected to be between $640 million and $710 million.
Zacks Rank & Key Picks
Oshkosh currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are AutoZone, Inc. (AZO - Free Report) , CarMax, Inc. (KMX - Free Report) and Cooper Tire & Rubber Company , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AutoZone has an expected long-term growth rate of 12.2%. Over the past six months, shares of the company have moved up 17.1%.
CarMax has an expected long-term growth rate of 3.3%. Over the past six months, shares of the company have moved up 10.1%.
Cooper Tire has an expected long-term growth rate of 4%. Shares of the company have risen 34% over the past six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>