In June 2018, Oshkosh Corporation (NYSE:OSK) released its earnings update. Generally, analysts seem fairly confident, as a 12.9% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 2.2%. By 2019, we can expect Oshkosh’s bottom line to reach US$467.4m, a jump from the current trailing-twelve-month US$414.1m. In this article, I’ve outline a few earnings growth rates to give you a sense of the market sentiment for Oshkosh in the longer term. For those interested in more of an analysis of the company, you can research its fundamentals here.
How will Oshkosh perform in the near future?
Longer term expectations from the 16 analysts covering OSK’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of OSK’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2021, OSK’s earnings should reach US$273.4m, from current levels of US$285.6m, resulting in an annual growth rate of 5.5%. EPS reaches $5.32 in the final year of forecast compared to the current $3.82 EPS today. Earnings growth appears to be a result of cost cutting activities, as revenues is expected to grow much slower than earnings. However, the near term margin expansion is expected to shrink heading into 2021, from the current levels of 4.2% to 4.0%.
Future outlook is only one aspect when you’re building an investment case for a stock. For Oshkosh, I’ve compiled three essential factors you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Oshkosh worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Oshkosh is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Oshkosh? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.