Core Viewpoint - Oshkosh (OSK) reported quarterly earnings of $2.58 per share, exceeding the Zacks Consensus Estimate of $2.18 per share, and showing a slight increase from $2.56 per share a year ago [1][2] Financial Performance - The company achieved revenues of $2.62 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 8.16%, compared to $2.47 billion in the same quarter last year [3] - Over the last four quarters, Oshkosh has consistently exceeded consensus EPS and revenue estimates [2][3] Stock Performance and Outlook - Oshkosh shares have increased by approximately 0.6% since the beginning of the year, while the S&P 500 has gained 2.7% [4] - The current consensus EPS estimate for the upcoming quarter is $2.15 on revenues of $2.43 billion, and for the current fiscal year, it is $10.36 on revenues of $10.23 billion [8] Industry Context - The Automotive - Original Equipment industry, to which Oshkosh belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [9] - The performance of Oshkosh's stock may be influenced by the overall outlook for the industry [9]

Group 1 - The market has oversold Oshkosh (NYSE: OSK) due to an overreaction to recent news, particularly concerning the risk of a failed USPS deal [3] - There is a potential for an upwards correction in Oshkosh's stock price as investors may have overestimated the risks associated with the USPS contract [3] - The focus is on identifying undervalued and growing companies, especially those in the early stages of development, which aligns with the investment strategy [3]

Core Insights - Oshkosh Corporation (OSK) reported adjusted earnings of $2.93 per share for Q3 2024, exceeding the Zacks Consensus Estimate of $2.87, but down from $3.04 in the same period last year [1] - Consolidated net sales increased by 9% year over year to $2.74 billion, surpassing the Zacks Consensus Estimate of $2.63 billion [1] Segmental Performance - **Access Segment**: Net sales rose 3.4% year over year to $1.36 billion, exceeding the Zacks Consensus Estimate of $1.29 billion, driven by improved sales volume in North America. Operating income fell 9.6% to $207.9 million, accounting for 15.2% of sales, but still surpassed the Zacks Consensus Estimate of $196 million [2] - **Defense Segment**: Net revenues increased 13.9% year over year to $540.4 million, surpassing the Zacks Consensus Estimate of $504 million, due to higher sales volume of aftermarket parts and tactical vehicles. Operating income fell 43.1% year over year to $11.2 million, but exceeded the Zacks Consensus Estimate of $4.43 million [3] - **Vocational Segment**: Net sales rose 17.6% year over year to $814.2 million, driven by AeroTech's acquisition and improved pricing. However, it missed the Zacks Consensus Estimate of $825 million. Operating income surged 89.7% to $99.6 million, accounting for 12.2% of sales, but fell short of the Zacks Consensus Estimate of $106 million [4] Financial Overview - As of September 30, 2024, Oshkosh had cash and cash equivalents of $160.9 million, up from $125.4 million as of December 31, 2023. Long-term debt increased to $602.3 million from $597.5 million [5] - The company declared a quarterly cash dividend of 46 cents per share, payable on November 29, 2024, to shareholders of record as of November 15, 2024 [5] Guidance Revision - Oshkosh revised its full-year 2024 sales expectation to approximately $10.6 billion, down from the previous estimate of $10.7 billion. Adjusted earnings per share are now expected to be $11.35, reduced from the prior guidance of $11.75 [6] Market Position - Oshkosh currently holds a Zacks Rank 3 (Hold). Comparatively, Toyota Motor Corporation, Standard Motor Products, and BYD Company Limited are better-ranked stocks in the auto space, each holding a Zacks Rank 1 (Strong Buy) [7]

Financial Data and Key Metrics Changes - The company reported consolidated sales of $2.74 billion for Q3 2024, an increase of $232 million or 9% year-over-year [21] - Adjusted operating income increased by $6.2 million to $283 million, representing 10.3% of sales [21] - Adjusted EPS was $2.93, down from $3.04 in the prior year [22] - The full-year adjusted EPS outlook was revised to approximately $11.35, down from $11.75 [7][22] Business Line Data and Key Metrics Changes - The Access segment experienced year-over-year sales growth, but faced pressure from slowing nonresidential construction and higher interest rates [10] - The Vocational segment achieved strong revenue growth of 17.6% with an adjusted operating margin of 13.7% [13] - The Defense segment saw a 14% increase in sales due to NGDV production and higher tactical vehicle deliveries [18] Market Data and Key Metrics Changes - The Access market is experiencing softer conditions, particularly in North America, but the company maintains a healthy backlog of over $2 billion [31] - The vocational market remains strong with significant orders, including a notable order from Republic Services for electric vehicles [14] - The defense market is expected to improve with new fixed-price contracts that are better aligned with current input costs [34] Company Strategy and Development Direction - The company is focused on increasing production capacity in its vocational segment and leveraging technology advancements [13][40] - The acquisition of AUSA is expected to enhance the company's presence in adjacent markets and support growth [12] - The company aims to ramp up production of the next-generation delivery vehicles (NGDV) throughout 2025, which is anticipated to drive future revenue growth [52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the softer market conditions in the access segment but expressed confidence in long-term growth drivers [48] - The company expects to continue delivering solid margins despite potential market softness in 2025 [50] - Management remains optimistic about the defense segment's recovery and the impact of new contracts on margins [34] Other Important Information - The company received approval for its greenhouse gas emission reduction targets, reflecting its commitment to sustainability [9] - The company is reducing its capital expenditure target by $25 million to $275 million and free cash flow estimate by the same amount to $350 million [25] Q&A Session Summary Question: Regarding the lower sales outlook due to access market conditions - Management clarified that while there are pushouts and cancellations, the backlog remains healthy at over $2 billion, indicating a stable market [31] Question: On pricing dynamics in the vocational segment - Management indicated strong double-digit price increases in the backlog, which will positively impact future earnings [32] Question: Update on defense margin targets - Management expects a step forward in margins in 2025 and a larger improvement in 2026 due to new contracts [34] Question: Access equipment market dynamics - Management noted that the market is normalizing after a period of strong demand, with some softness expected in private construction [48] Question: Capacity expansion in the vocational segment - Management confirmed ongoing capacity increases in existing facilities to meet strong demand [40] Question: Supply chain readiness for electric vehicle offerings - Management expressed confidence in the supply chain's ability to support ramp-up in electric vehicle production [83]

Core Insights - Oshkosh reported revenue of $2.74 billion for the quarter ended September 2024, reflecting a 9.2% increase year-over-year, with EPS at $2.93 compared to $3.04 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.63 billion by 4.26%, and EPS also surpassed the consensus estimate of $2.87 by 2.09% [1] Financial Performance Metrics - Net Sales- Access- Total reached $1.36 billion, exceeding the average estimate of $1.28 billion by four analysts, marking a 3.4% year-over-year increase [3] - Net Sales- Access- Aerial work platforms were reported at $631.70 million, below the average estimate of $657.15 million, representing a 3.5% decline year-over-year [3] - Net Sales- Access- Telehandlers achieved $445 million, surpassing the estimated $410.89 million, with a 13% increase compared to the previous year [3] - Net Sales- Access- Other totaled $286.60 million, exceeding the average estimate of $279.48 million, reflecting a 6.1% year-over-year increase [3] - Net Sales- Vocational- Total was $814.20 million, slightly below the estimate of $825.03 million, but showed a significant 17.6% increase year-over-year [3] - Net Sales- Defense reached $540.40 million, surpassing the average estimate of $504.17 million, with an 8.1% year-over-year increase [3] - Adjusted Access segment operating income (non-GAAP) was reported at $211.40 million, slightly above the average estimate of $207.79 million [3] - Adjusted Corporate operating expenses (non-GAAP) were -$51.70 million, compared to the average estimate of -$48 million [3] Stock Performance - Oshkosh shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [4]

Company Performance - Oshkosh reported quarterly earnings of $2.93 per share, exceeding the Zacks Consensus Estimate of $2.87 per share, but down from $3.04 per share a year ago [1] - The earnings surprise for this quarter was 2.09%, and the company had a previous quarter surprise of 11.33% with actual earnings of $3.34 per share against an expectation of $3 per share [2] - Revenues for the quarter ended September 2024 were $2.74 billion, surpassing the Zacks Consensus Estimate by 4.26%, compared to $2.51 billion in the same quarter last year [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.13 on revenues of $2.43 billion, and for the current fiscal year, it is $11.33 on revenues of $10.45 billion [8] - The estimate revisions trend for Oshkosh has been unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Automotive - Original Equipment industry, to which Oshkosh belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [6]

Group 1 - Oshkosh (NYSE: OSK) is an American manufacturer of heavy equipment, primarily targeting municipal and military customers [1] - The company has a strong backlog due to a significant contract win from the USPS (US Postal Service), despite losing the JLTV (Joint Light Tactical Vehicle) contract [1] Group 2 - The article highlights the experience and background of Benjamin Halliburton, the founder of Building Benjamins and Tradition Investment Management, emphasizing his successful investment career and accolades [1]

Core Insights - Oshkosh reported Q2 2024 adjusted earnings of $3.34 per share, exceeding the Zacks Consensus Estimate of $3, and up from $2.69 in the previous year [2] - Consolidated net sales increased by 18% year over year to $2.85 billion, surpassing the Zacks Consensus Estimate of $2.77 billion [2] Segment Performance - **Access Segment**: Net sales rose 5.9% year over year to $1.41 billion, exceeding the Zacks Consensus Estimate of $1.39 billion. Operating income increased by 16.4% to $246.5 million, accounting for 17.5% of sales, surpassing the estimate of $200 million [3] - **Defense Segment**: Net revenues increased by 20.2% year over year to $598.7 million, exceeding the Zacks Consensus Estimate of $555 million. However, the segment incurred an operating loss of $39.9 million, contrasting with the expected operating income of $5.59 million due to intangible asset impairments [4] - **Vocational Segment**: Net sales climbed 43.5% year over year to $843.1 million, surpassing the Zacks Consensus Estimate of $811 million. Operating income surged 76% to $106.5 million, accounting for 12.6% of sales, exceeding the estimate of $88 million [5] Financial Overview - As of June 30, 2024, Oshkosh had cash and cash equivalents of $141.4 million, up from $125.4 million as of December 31, 2023. Long-term debt increased slightly to $599.1 million from $597.5 million [6] - The company declared a quarterly cash dividend of 46 cents per share, payable on August 30, 2024, to shareholders of record as of August 16, 2024 [6] Revised Guidance - Oshkosh anticipates full-year 2024 sales to be around $10.7 billion and adjusted earnings per share to be $11.75, up from the previous guidance of $11.25 [7] Market Sentiment - There has been an upward trend in estimates revision for Oshkosh, with a current VGM Score of C, indicating a subpar Growth Score of D and a Momentum Score of D, but a strong Value Score of B [8] - The stock has a Zacks Rank 3 (Hold), suggesting an expectation of in-line return in the coming months [9] Industry Context - Oshkosh operates within the Zacks Automotive - Original Equipment industry, where another player, Gentex, has seen a 1.9% gain over the past month. Gentex reported revenues of $572.93 million, reflecting a year-over-year decline of 1.8% [10]

Shares of Oshkosh Corporation (OSK) have lost 9.6% since it reported second-quarter 2024 results. It reported adjusted earnings of $3.34 per share, beating the Zacks Consensus Estimate of $3. The bottom line also rose from $2.69 recorded in the year-ago period. Consolidated net sales climbed 18% year over year to $2.85 billion. The top line also surpassed the Zacks Consensus Estimate of $2.77 billion. Segmental Details Access: The segment's net sales rose 5.9% year over year to $1.41 billion and surpassed t ...

Core Viewpoint - Oshkosh Corporation (OSK) is positioned to benefit from a strong backlog, strategic acquisitions, and ongoing defense program support, despite concerns over rising capital expenditures and high ramp-up costs [1] Group 1: Backlog and Acquisitions - Oshkosh's consolidated backlog increased to $15.37 billion as of March 2024, up from $14.97 billion a year earlier, with significant contributions from Access Equipment ($3.26 billion), Defense ($6.43 billion), and Vocational ($5.68 billion) segments [2] - The acquisition of JBT's AeroTech business in August 2023 has allowed Oshkosh to enter the air transportation support market, enhancing aftermarket parts and services through a recurring revenue model [3] - The acquisition of Hinowa in January 2023 has expanded Oshkosh's manufacturing capabilities in Europe and accelerated electrification efforts, while previous acquisitions like CartSeeker Technology and a minority investment in Robotics are expected to enhance long-term growth [4] Group 2: Financial Performance and Guidance - Adjusted operating margin forecasts for Access Equipment and Vocational segments have improved, with expected margins of 16.5% and 12.75% respectively, driven by favorable sales mix and better manufacturing efficiencies [5] - Oshkosh's total debt-to-capital ratio is 0.13, significantly lower than the auto sector's 0.57, providing financial flexibility for growth opportunities [6] - The company raised its 2024 guidance, expecting adjusted operating income of approximately $1.14 billion and adjusted EPS of $11.75, an increase from previous projections [10] Group 3: Defense Segment and Market Demand - The Defense segment is entering a critical year in 2024 with the transition to the Next Generation Delivery Vehicle (NGDV) for the U.S. Postal Service, anticipating increased vehicle production through 2025 [7] - Ongoing support for various defense programs and modernization efforts are expected to drive top-line growth in the Defense segment [7] - The demand for aerial work platforms and telehandlers remains strong due to infrastructure investments and industrial onshoring initiatives, prompting Oshkosh to expand capacity across its operations [8][9] Group 4: Capital Expenditures and Challenges - Oshkosh anticipates 2024 capital expenditures to remain high at around $300 million, primarily for the NGDV facility and new product development [12] - Significant ramp-up costs associated with NGDV production are expected to impact near-term profitability, particularly in the Defense segment [12]