Oshkosh Corporation
OSK
reported first-quarter fiscal 2022 (ended Dec 31, 2021) adjusted earnings of 9 cents per share, which missed the Zacks Consensus Estimate of 19 cents. Higher material and logistics costs and adverse product mix affected the company’s income. The metric also decreased from $1.13 recorded in the year-ago period.
In the quarter, consolidated net sales jumped 13.7% year over year to $1,791.7 million on the back of a rebound in demand in the Access Equipment segment in North America. The top line outpaced the Zacks Consensus Estimate of $1,757 million.
Segmental Details
During the quarter under discussion, net sales in Access Equipment surged 47.9% year over year to $833.5 million on improved market demand in North America. Operating income climbed 29.7% to $32.3 million (accounting for 3.9% of sales) on the back of higher sales volume, improved pricing and manufacturing absorption, a favorable regional sales mix and the absence of restructuring charges.
The Defense segment’s net sales fell 3.4% year over year to $531.5 million, led by lower volumes of Medium and Heavy Tactical Vehicle programs, along with reduced aftermarket parts & services sales. The operating income plunged 79.9% from the prior-year figure to $10.6 million (2% of sales). The downslide resulted from higher material costs, offsetting the benefit of the JLTV order.
Net sales in the Fire & Emergency segment totaled $218.6 million, decreasing 20.2% year over year. Lower aircraft rescue and firefighting vehicle sales volume along with tightened production and delivery of Pierce fire trucks adversely impacted the top line. The segment’s operating income fell 73.5% year over year to $9.3 million (4.3% of sales) amid higher material and manufacturing costs.
Net sales in the Commercial segment increased 7.6% from the year-ago figure to $210.6 million on higher front-discharge concrete mixer volume and higher pricing led by higher input costs. The segment, however, incurred an operating loss of $3.3 million (1.6% of sales), chiefly due to higher material costs and adverse product mix.
Financials, Dividend & Buyback
Oshkosh had cash and cash equivalents of $995.7 million on Dec 31, 2021. The company recorded a long-term debt of $819 million as of Dec 31, 2021.
Oshkosh declared a quarterly cash dividend of 37 cents per share, payable Feb 25, 2022, to shareholders on record as of Feb 11, 2022.
OSK repurchased nearly 1.4 million shares of common stock for $150 million during the three months ended Dec 31.
Outlook
Steered by robust customer demand, significant backlog price realization and improved input costs, the company stated its fiscal 2022 earnings per share expectations in the range of $5.75-$6.75 on projected net sales between $8.0 billion-$8.5 billion.
Zacks Rank & Key Picks
Currently, Oshkosh carries a Zacks Rank #3 (Hold). OSK’s shares have gained 22.8% over the past year against the
industry
’s 43% decline.
Some better-ranked players in the auto space are
General Motors
GM
and
Tesla
TSLA
, each sporting a Zacks Rank #1 (Strong Buy), and
Genuine Parts
GPC
, carrying a Zacks Rank #2 (Buy) currently. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
General Motors has an expected earnings growth rate of 2.12% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.1% upward over the past 60 days.
General Motors’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GM pulled off a trailing four-quarter earnings surprise of 46.51%, on average. The stock has also rallied 1.5% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 4.4% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 38.4% over a year.
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