Oshkosh (OSK) beats fourth quarter earnings estimates, increases dividend


Oshkosh Corporation OSK reported adjusted earnings of $ 1.05 per share for the fourth quarter of fiscal 2021 (ended September 30, 2021), down from $ 1.30 recorded in the last year’s quarter. Nonetheless, the metric topped Zacks’ consensus estimate of 93 cents thanks to higher-than-expected sales from the Defense and Fire & Emergency segments.

In the quarter presented, consolidated net sales jumped 15.6% year-over-year to $ 2,063 million thanks to a rebound in demand in the access equipment segment in North America. The top line also beat Zacks’ consensus estimate of $ 2,047 million.

Oshkosh Corporation price, consensus and BPA surprise

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

Segment details

In the September quarter, access equipment net sales jumped 37.3% year-over-year to $ 845.9 million on improving market demand in America North. Operating profit climbed 21.3% to $ 30.7 million (representing 3.6% of sales) thanks to higher sales volume, better absorption of manufacturing and the absence of operating expenses. restructuring.

Defense segment net sales edged up 5.1% year-over-year to $ 650.2 million in the fiscal fourth quarter, driven by increased volume from the Joint Light Tactical Vehicle program and sales of the Pratt Miller acquisition. The metric also broke the consensus mark of $ 643 million. Operating income decreased 11.3% from a year ago to $ 49.7 million (7.6% of sales). This decrease is the result of an unfavorable product mix, higher material costs and unfavorable production variances.

Net sales in the Fire & Emergency segment totaled $ 337.7 million, beating Zacks’ consensus estimate of $ 310 million and up from the $ 305.2 million recorded in the fourth quarter of the year. Fiscal year 2020. The increase is driven by higher sales volume for aircraft rescue and firefighting vehicles. However, segment operating profit fell 6.3% year on year to $ 47.2 million (14% of sales) due to rising material costs and manufacturing inefficiencies caused by supply chain shortages.

Commercial segment net sales decreased 6.2% from a year ago to $ 233.8 million in the fiscal fourth quarter due to lower package sales. The segment’s operating profit fell 66% to $ 10.7 million (4.6% of sales), mainly due to higher material costs.

Finances and dividends

Oshkosh – who shares space with Adient API ADNT, Autoliv, Inc. ALV, and BorgWarner Inc. BWA – had cash and cash equivalents of $ 1,375.8 million as at September 30, 2021. The company recorded long-term debt of $ 818.8 million as at September 30, 2021.

Oshkosh’s board of directors announced a quarterly cash dividend of 37 cents per share to shareholders, which is a 12% increase from the previous payment. The dividend will be paid on November 29, 2021 to shareholders of record on November 15, 2021.

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

You can see The full list of today’s Zacks # 1 Rank (Fort Buy) stocks here.

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