Back to top

Image: Shutterstock

Oshkosh (OSK) Q1 Earnings Beat on Solid Access Unit Results

Read MoreHide Full Article

Oshkosh Corporation (OSK - Free Report) reported first-quarter 2023 adjusted earnings of $1.59 per share, beating the Zacks Consensus Estimate of $1. The outperformance can be largely attributed to higher-than-expected sales and profits from the Access segment. The bottom line also rocketed 488% from 27 cents recorded in the year-ago period. In the quarter under review, consolidated net sales climbed 16.6% year over year to $2,268 million. The top line surpassed the Zacks Consensus Estimate of $2,091 million.

The company estimates 2023 sales and adjusted earnings to be around $8.65 billion and $6/share, respectively. Oshkosh currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Oshkosh Corporation Price, Consensus and EPS Surprise

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 35.1% year over year to $1,193.2 million on improved sales volume and higher pricing. The metric crossed the consensus estimate of $999 million.

Operating income skyrocketed 2,268.4% to $135 million (accounting for 11.3% of sales) owing to higher sales volume and pricing, offset in part by higher input costs. The metric came ahead of the Zacks Consensus Estimate of $80 million.

Defense: The segment’s net revenues tailed off 4.2% year over year to $513.1 million due to lower Joint Light Tactical Vehicle program volume. However, the metric was marginally higher than the Zacks Consensus Estimate of $512 million.

Operating income tanked 91.2% from the prior-year figure to $1.7 million (0.3% of sales), owing to a favorable product mix.The reduction occurred because of various factors, such as an increase in adverse cumulative catch-up adjustments on contract margins, higher inventory reserves, an unfavorable product mix, lower sales volume and higher operating expenses. The metric significantly lagged the Zacks Consensus Estimate of $22.74 million.

Vocational: The segment’s net sales rose 6.3% year over year to $562.7 million on improved sales volume and higher pricing. Operating income declined 31.5% to $28.1 million (accounting for 5% of sales). The main cause of the decline was a loss of $13.3 million incurred from selling a business. The impact of increased material and logistics costs, higher spending on new product development and unfavorable product mix was offset by higher pricing.

During the first quarter of 2023, the Vocational segment experienced a loss of $13.3 million due to the sale of a business and incurred restructuring costs of $2.3 million. However, if we exclude these items, the adjusted operating income for the Vocational segment in the first quarter of the 2023 was $43.7 million, which accounted for 7.8% of sales.

Financials

Oshkosh had cash and cash equivalents of $538.7 million as of Mar 31, 2023. The company recorded a long-term debt of $595.2 million, essentially flat from the 2022-end levels.

Oshkosh declared a quarterly cash dividend of 41 cents per share. The dividend will be paid out on May 30, 2023, to shareholders of record as of May 15, 2023.

Peer Releases

Autoliv (ALV - Free Report) reported first-quarter 2023 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 87 cents. Higher-than-expected revenues from the Airbags and Associated Products segment led to the outperformance. The bottom line also shot up 99% on a year-over-year basis. The company reported net sales of $2,493 million in the quarter, which topped the Zacks Consensus Estimate of $2,283 million and soared 17% year over year. Organic sales rose 21% year over year and breezed past the consensus mark of 6.27%.

Autoliv had cash and cash equivalents of $713 million as of Mar 31, 2023, down 24% year over year. Long-term debt totaled $1601 million, increasing from $1,054 million as of Dec 31, 2022.The company forecasts full-year 2023 organic sales growth of around 15%.

Lear Corp. (LEA - Free Report) reported first-quarter 2023 adjusted earnings of $2.78 per share, which surged from $1.80 recorded in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.55 per share. Higher-than-expected contribution from the Seating segment led to the outperformance. In the reported quarter, revenues increased 12% year over year to $5,845.5 million. The top line also beat the Zacks Consensus Estimate of $5,505 million.

The company had $898.5 million in cash and cash equivalents at the quarter’s end versus $1,114.9 million recorded as of Dec 31, 2022. Lear had long-term debt of $2,591.6 million at quarter end compared with a debt of $2,591.2 million as of 2022-end.

Allison Transmission (ALSN - Free Report) posted first-quarter 2023 earnings of $1.85 a share, up 42% year over year and topped the Zacks Consensus Estimate of $1.52 owing to higher-than-anticipated sales from North America On-Highway, North America Off-Highway and Service Parts, Support Equipment & Other end markets. Quarterly revenues of $741 million grew 9% from the year-ago period and crossed the consensus mark of $715 million.

Allison had cash and cash equivalents of $344 million on Mar 31, 2023, up from $232 million as of Dec 31, 2022. Long-term debt was $2,500 million compared with $2,501 million as of Dec 31, 2022. During the first quarter, the company hiked its quarterly dividend by 10% to 23 cents/ share and repurchased 1% of outstanding shares.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in