Oshkosh (OSK) Beats Q4 Earnings Estimates, Hikes Dividend

Oshkosh Corporation OSK reported fourth-quarter fiscal 2021 (ended Sep 30, 2021) adjusted earnings of $1.05 per share, decreasing from $1.30 recorded in the year-ago quarter. Nonetheless, the metric beat the Zacks Consensus Estimate of 93 cents on the back of higher-than-expected sales from the Defense and Fire & Emergency segments.

In the reported quarter, consolidated net sales jumped 15.6% from the prior-year period to $2,063 million on the back of a rebound in demand in the Access Equipment segment in North America. The top line also beat the Zacks Consensus Estimate of $2,047 million.

Oshkosh Corporation Price, Consensus and EPS Surprise

Oshkosh Corporation Price, Consensus and EPS Surprise

Oshkosh Corporation price-consensus-eps-surprise-chart | Oshkosh Corporation Quote

Segmental Details

In the September quarter, net sales in Access Equipment surged 37.3% year over year to $845.9 million on improved market demand in North America. Operating income climbed 21.3% to $30.7 million (accounting for 3.6% of sales) on the back of higher sales volume, improved manufacturing absorption, and the absence of restructuring charges.

The Defense segment’s net sales edged up 5.1% year over year to $650.2 million in the fiscal fourth quarter, led by higher Joint Light Tactical Vehicle program volume and sales from the Pratt Miller acquisition. The metric also topped the consensus mark of $643 million. The operating income decreased 11.3% from the prior-year figure to $49.7 million (7.6% of sales). The downslide resulted from adverse product mix, higher material costs, and unfavorable production variances.

Net sales in the Fire & Emergency segment totaled $337.7 million, beating the Zacks Consensus Estimate of $310 million and increasing from $305.2 million recorded in fourth-quarter fiscal 2020. The upside stemmed from higher Aircraft Rescue and Firefighting vehicle sales volume. However, the segment’s operating income slipped 6.3% year over year to $47.2 million (14% of sales) amid higher material costs, manufacturing inefficiencies brought by supply chain shortages.

Net sales in the Commercial segment decreased 6.2% from the year-ago figure to $233.8 million in the fiscal fourth quarter on lower package sales. The segment’s operating income decreased 66% to $10.7 million (4.6% of sales), chiefly due to higher material costs.

Financials & Dividend

Oshkosh — which shares space with Adient PLC ADNT, Autoliv, Inc. ALV, and BorgWarner Inc. BWA — had cash and cash equivalents of $1,375.8 million on Sep 30, 2021. The company recorded a long-term debt of $818.8 million as of Sep 30, 2021.

Oshkosh’s board announced a quarterly cash dividend of 37 cents per share for shareholders, representing a 12% hike from the previous payout. The dividend will be paid out on Nov 29, 2021, to shareholders on record as of Nov 15, 2021.

Oshkosh currently carries a Zacks Rank #4 (Sell).

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