Oshkosh (OSK) Q2 Earnings Beat Estimates, Guidance Raised
Oshkosh Corporation OSK reported second-quarter 2023 adjusted earnings of $2.69 per share, beating the Zacks Consensus Estimate of $1.57. The outperformance can be largely attributed to double-digit operating margins in the Access and Vocational segments. The bottom line also rose from 41 cents recorded in the year-ago period. In the quarter under review, consolidated net sales climbed 16.8% year over year to $2,413 million. The top line surpassed the Zacks Consensus Estimate of $2,251 million.
Oshkosh Corporation Price, Consensus and EPS Surprise
Oshkosh Corporation price-consensus-eps-surprise-chart | Oshkosh Corporation Quote
Segmental Details
Access: The segment’s net sales rose 35.9% year over year to $1,328 million. The metric also surpassed our estimate of $1,102.4 million due to higher-than-expected sales volume and pricing strength.
Operating income skyrocketed 191.2% to $211.7 million (accounting for 15.9% of sales) owing to higher sales volume and pricing. The metric also came ahead of our estimate of $56 million.
Defense: The segment’s net revenues tailed off 7.6% year over year to $498.1 million due to lower Joint Light Tactical Vehicle program volume. The metric also missed our estimate of $547.1 million.
Operating income rose 62.5% from the prior-year figure to $6.3 million (1.3% of sales), owing to lower unfavorable cumulative catch-up adjustments on contract margins. The metric significantly lagged our estimate of $40.2 million.
Vocational: The segment’s net sales rose 6.5% year over year to $587.5 million on improved sales volume and higher pricing. The metric also surpassed our estimate of $526.2 million.
Operating income increased 52% to $60.5 million (accounting for 10.3% of sales) due to higher pricing and an improved product mix.
Financials
Oshkosh had cash and cash equivalents of $355.5 million as of Jun 30, 2023. The company recorded a long-term debt of $597.3 million, essentially flat from 2022-end levels.
Oshkosh declared a quarterly cash dividend of 41 cents per share. The dividend will be paid out on Aug 31, 2023, to shareholders of record as of Aug 17, 2023.
Updated 2023 Guidance
The company estimates full-year 2023 sales to be around $9.5 billion, up from the previous estimate of $8.65 billion. It expects adjusted earnings of $8 per share, up from the previous estimate of $6 per share.
Zacks Rank & Key Picks
Oshkosh currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space include Toyota Motor Corporation TM and PACCAR Inc. PCAR, each sporting a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s 2023 sales implies year-over-year growth of 6.8%. The EPS estimate for 2023 has moved north by 95 cents in the past 30 days. The 2024 EPS estimate has moved up by 54 cents in the past seven days.
The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 19.6% and 40.1%, respectively. The EPS estimate for 2023 has moved up by 43 cents in the past seven days. The 2024 EPS estimate has moved north by 11 cents in the past seven days.
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