Oshkosh (OSK) Beats Q1 Earnings Estimates, Lowers '22 View
Oshkosh Corporation OSK reported adjusted earnings of 24 cents per share in the first quarter of 2022. The metric topped the Zacks Consensus Estimate of 17 cents. Higher-than-expected operating income from the Fire & Emergency and Commercial segments led to the outperformance. However, the bottom line decreased from $1.13 recorded in the year-ago quarter.
In the quarter under review, consolidated net sales rose 3% year over year to $1,945.7 million. The top line outpaced the Zacks Consensus Estimate of $1,874.5 million.
Oshkosh Corporation Price, Consensus and EPS Surprise
Oshkosh Corporation price-consensus-eps-surprise-chart | Oshkosh Corporation Quote
Segmental Details
During the quarter under discussion, net sales in Access Equipment surged around 19.6% year over year to $883.1 million on strong market demand in North America. The figure, however, missed the consensus metric of $888 million. Operating income plunged 90.7% to $7.5 million (accounting for 0.8% of sales) and missed the consensus mark of $22.93 million. The downside was due to higher material & logistics and manufacturing costs.
The Defense segment’s net sales fell 12.9% year over year to $535.6 million, led by lower volumes of Medium and Heavy Tactical Vehicle programs. But, sales in this segment beat the consensus mark of $529 million. The operating income came down 45.4% from the prior-year figure to $19.4 million (3.6% of sales) and lagged the consensus metric of $21.64 million.
Net sales in the Fire & Emergency segment totaled $287.9 million, decreasing 7.9% year over year. Lower aircraft rescue and firefighting vehicle sales adversely impacted the top line. The figure crossed the consensus mark of $265 million. The segment’s operating income fell 52.7% year over year to $22.4 million (7.8% of sales) amid higher material and logistics costs, parts scarcity-induced higher manufacturing costs and lower sales volume. Nevertheless, the figure surpassed the consensus mark of $18.33 million.
Net sales in the Commercial segment increased 5% from the year-ago figure to $241.4 on a higher percentage of sales, including a third-party chassis and higher pricing to address higher input costs. The figure also beat the consensus mark of $236 million. The segment reported an operating income of $14.3 million (5.9% of sales), decreasing 23.9% chiefly due to higher material, manufacturing costs and lower sales. The figure outpaced the consensus mark of $4.52 million.
Financials, Dividend & Buyback
Oshkosh had cash and cash equivalents of $944.5 million on Mar 31, 2022, falling from $995.7 million as of Mar 31, 2021. The company recorded a long-term debt of $594.4 million as of Mar 31, 2022, compared with $819 million recorded as of Dec 31, 2021.
Oshkosh declared a quarterly cash dividend of 37 cents per share, payable May 27, 2022, to shareholders on record as of May 13, 2022.
OSK repurchased nearly 751.31 million shares of common stock for $85 million during the reported quarter.
Outlook
The company modified its guidance for fiscal 2022. The company has now set its earnings per share expectations in the range of $5-$6, down from the previous range of $5.75-$6.75.
It lowered its estimated consolidated operating income to the range of $475-$560 million from its previous projection of $545-$625 million.
Zacks Rank & Key Picks
OSK currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked players in the auto space include BRP Group, Inc. DOOO, sporting a Zacks Rank #1 (Strong Buy) and Dorman Products DORM and Standard Motor Products SMP, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.
BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 12.5% over the past year.
Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.
Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 2% over the past year.
The Zacks Consensus Estimate for Standard Motor’s current-year earnings has been revised around 1.1% upward in the past 60 days.
Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 60.5%, on average. The stock has declined 2.2% over the past year.
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