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Oshkosh (OSK) Up 5.4% Since Q2 Earnings and Revenue Beat

Oshkosh Corporation’s OSK shares have increased 5.5% since the company reported impressive second-quarter fiscal 2021 results on Apr 28, before the opening bell. Not only did the firm deliver a comprehensive beat, it also witnessed year-over-year growth in overall sales and earnings.

Oshkosh reported second-quarter fiscal 2021 (ended Mar 31, 2021) adjusted earnings of $1.48 per share, up from $1.25 recorded in the year-ago period. Moreover, fiscal second-quarter earnings surpassed the Zacks Consensus Estimate of $1.15. This outperformance primarily stemmed from higher-than-anticipated revenues and operating income from the Access Equipment and Fire & Emergency segments of the company.
 
For the reported quarter, consolidated net sales edged up 5.1% from the prior-year period to $1,889 million. The top line also surpassed the Zacks Consensus Estimate of $1,755 million.

For the fiscal second quarter, consolidated operating income rose 5.4%, year over year to $140.8 million (accounting for 7.5% of sales).

Segmental Details

For the March-end quarter, net sales in Access Equipment grew 6.5% year over year to $738.2 million on improved market demand in North America and Asia. The metric also topped the consensus estimate of $639 million. Operating income surged 13.7% from the prior-year quarter to $80.5 million (10.9% of sales) and surpassed the consensus mark of $58 million. This upside primarily resulted from higher sales volumes and revenues, improved product mix as well as lower spending.

The Defense segment’s net sales slipped 2.6% year on year to $614.7 million for the fiscal second quarter owing to lower volumes. The sales figure, however, surpassed the consensus mark of $600 million. Operating income dipped 40.5% from the prior-year figure to $35.5 million (5.8% of sales). The decline chiefly resulted from a decrease in the cumulative catch-up adjustment on contract margins and higher new product development spending.

Net sales in the Fire & Emergency segment totaled $312.5 million, outpacing the Zacks Consensus Estimate of $275 million. The reported figure also increased 29% year over year. This uptrend resulted from higher aircraft rescue and firefighting vehicle volume as a series of multi-unit international awards were recognized in the reported quarter. In fact, higher sales volume and reduced spending as a result of the pandemic boosted the segment’s operating income by 149.5% year on year to $47.4 million (15.2% of sales). The metric also topped the consensus mark of $30.98 million.

Net sales in the Commercial segment inched down 2.8% from the year-ago figure to $230 million for the fiscal second quarter on lower refuse collection vehicle demand amid the coronavirus pandemic and negative impact of the sale of the concrete batch plant business in fourth-quarter fiscal 2020. The segment’s operating income, however, jumped 132.1% from the prior-year period to $18.8 million (8.2% of sales), chiefly due to lower warranty costs, reduced spending and low product liability costs.

Financials & Dividend

Oshkosh — which shares space with Adient PLC ADNT, Autoliv, Inc. ALV and BorgWarner Inc. BWA — had cash and cash equivalents of $1,093.2 million as of Mar 31, 2021. The company recorded a long-term debt of $818.3 million as of Mar 31, 2021. Net cash provided by operating activities for the three-month period ended Mar 31, 2021 was $326.8 million.

Oshkosh’s board announced a quarterly cash dividend of 33 cents per share for shareholders. The dividend amount will be paid on May 28 to shareholders of record as of May 14, 2021.

FY21 View

The Zacks Rank #1 (Strong Buy) company expects fiscal 2021 adjusted EPS in the band of $6.35-$6.85 per share. Revenues are forecast in the range of $7.75-$7.95 billion. Adjusted operating income is envisioned between $610 million and $655 million. You can see the complete list of today’s Zacks #1 Rank stocks here.

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BorgWarner Inc. (BWA): Free Stock Analysis Report
 
Autoliv, Inc. (ALV): Free Stock Analysis Report
 
Oshkosh Corporation (OSK): Free Stock Analysis Report
 
Adient PLC (ADNT): Free Stock Analysis Report
 
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