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Oshkosh Shares Fall 2.5% Since Q3 Earnings Beat Expectations
OSKOshkosh (OSK) ZACKS·2024-11-06 15:20

Core Insights - Oshkosh Corporation (OSK) reported adjusted earnings of 2.93pershareforQ32024,exceedingtheZacksConsensusEstimateof2.93 per share for Q3 2024, exceeding the Zacks Consensus Estimate of 2.87, but down from 3.04inthesameperiodlastyear[1]−Consolidatednetsalesincreasedby93.04 in the same period last year [1] - Consolidated net sales increased by 9% year over year to 2.74 billion, surpassing the Zacks Consensus Estimate of 2.63billion[1]SegmentalPerformance−∗∗AccessSegment∗∗:Netsalesrose3.42.63 billion [1] Segmental Performance - **Access Segment**: Net sales rose 3.4% year over year to 1.36 billion, exceeding the Zacks Consensus Estimate of 1.29billion,drivenbyimprovedsalesvolumeinNorthAmerica.Operatingincomefell9.61.29 billion, driven by improved sales volume in North America. Operating income fell 9.6% to 207.9 million, accounting for 15.2% of sales, but still surpassed the Zacks Consensus Estimate of 196million[2]−∗∗DefenseSegment∗∗:Netrevenuesincreased13.9196 million [2] - **Defense Segment**: Net revenues increased 13.9% year over year to 540.4 million, surpassing the Zacks Consensus Estimate of 504million,duetohighersalesvolumeofaftermarketpartsandtacticalvehicles.Operatingincomefell43.1504 million, due to higher sales volume of aftermarket parts and tactical vehicles. Operating income fell 43.1% year over year to 11.2 million, but exceeded the Zacks Consensus Estimate of 4.43million[3]−∗∗VocationalSegment∗∗:Netsalesrose17.64.43 million [3] - **Vocational Segment**: Net sales rose 17.6% year over year to 814.2 million, driven by AeroTech's acquisition and improved pricing. However, it missed the Zacks Consensus Estimate of 825million.Operatingincomesurged89.7825 million. Operating income surged 89.7% to 99.6 million, accounting for 12.2% of sales, but fell short of the Zacks Consensus Estimate of 106million[4]FinancialOverview−AsofSeptember30,2024,Oshkoshhadcashandcashequivalentsof106 million [4] Financial Overview - As of September 30, 2024, Oshkosh had cash and cash equivalents of 160.9 million, up from 125.4millionasofDecember31,2023.Long−termdebtincreasedto125.4 million as of December 31, 2023. Long-term debt increased to 602.3 million from 597.5million[5]−Thecompanydeclaredaquarterlycashdividendof46centspershare,payableonNovember29,2024,toshareholdersofrecordasofNovember15,2024[5]GuidanceRevision−Oshkoshreviseditsfull−year2024salesexpectationtoapproximately597.5 million [5] - The company declared a quarterly cash dividend of 46 cents per share, payable on November 29, 2024, to shareholders of record as of November 15, 2024 [5] Guidance Revision - Oshkosh revised its full-year 2024 sales expectation to approximately 10.6 billion, down from the previous estimate of 10.7billion.Adjustedearningspersharearenowexpectedtobe10.7 billion. Adjusted earnings per share are now expected to be 11.35, reduced from the prior guidance of $11.75 [6] Market Position - Oshkosh currently holds a Zacks Rank 3 (Hold). Comparatively, Toyota Motor Corporation, Standard Motor Products, and BYD Company Limited are better-ranked stocks in the auto space, each holding a Zacks Rank 1 (Strong Buy) [7]