Oshkosh Shares Fall 2.5% Since Q3 Earnings Beat Expectations

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]