Oshkosh’s (OSK), Q1 earnings beat on solid access unit results
Oshkosh Corporation OSK posted a first-quarter adjusted profit of $1.59 a share, exceeding the Zacks Consensus estimate of $1. This outperformance is largely due to the Access segment’s higher than expected sales and profits. The bottom-line also jumped 488% to 27 cents from the period a year ago. In the quarter reviewed, consolidated net revenues grew 16.6% on an annual basis to $2 268 million. The top line exceeded the Zacks Consensus Expectation of $2,091 millions.
The company expects 2023 sales to be approximately $8.65 billion, and earnings adjusted to $6/share. Oshkosh has a Zacks Ranking #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Oshkosh Corporation Surprises with Price, Consensus, and EPS
Oshkosh Corporation price-consensus-eps-surprise-chart | Oshkosh Corporation Quote
Segmental Details
Access to the Internet: 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 exceeded the consensus forecast of $999 millions.
Operating income increased 2,268.4% (to $135 million) due to an increase in sales volume, pricing and input costs. This metric was higher than the Zacks Consensus estimate of $80 millions.
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. The metric was slightly higher than the Zacks Consensus estimate of $512 millions.
Operating income fell 91.2% compared to the prior year to $1.7M (0.3% of Sales), due to an improved product mix. The Zacks Consensus Expectation of $22.74 millions was far behind the metric.
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 decreased 31.5% (to $28.1 million, or 5% sales) The primary cause of this decline was the loss of $13.3 millions incurred when selling a business. The increased costs of material and logistics, the higher expenditure on new product development, and the unfavorable composition of products have been offset by a higher price.
The Vocational segment suffered a loss of 13.3 million dollars due to a sale of an enterprise and had restructuring costs of $2.3 millions. In the first quarter of 2023, excluding these items, adjusted operating income was $43.7m, which represented 7.8% sales.
Financials
Oshkosh held cash and cash equivalents worth $538.7million as of 31 March 2023. The company’s long-term liabilities were $595.2million, almost unchanged from levels at the end of 2022.
Oshkosh announced a cash quarterly dividend of 41 cents a share. The dividend will be distributed on May 30, 2023 to all shareholders with records as of the 15th of May 2023.
Peer Releases
Autoliv ALV’s first-quarter adjusted earnings per share of 90 cents beat the Zacks Consensus estimate of 87 cents. ALV’s outperformance is attributed to better-than-expected sales from its Airbags and Associated Products division. The bottom line grew by 99% year over year. The company posted net sales of 2,493 million dollars in the third quarter. This was higher than the Zacks Consensus estimate of $2283 million, and increased by 17% over the previous year. Organic sales grew 21% over the past year, surpassing the consensus figure of 6.27%.
Autoliv’s cash and cash-equivalents were $713 million at the end of March 2023. This is a 24% decrease from the previous year. The company’s long-term debt increased to $1601 millions, up from $1054 million at Dec 31, 2022.
Lear Corp. LEA’s first-quarter 2023 earnings were $2.78 per share. This is up from the $1.80 reported in the previous quarter. The bottom line was also higher than the Zacks Consensus estimate of $2.55 a share. The Seating segment contributed more than expected to the performance. Revenues increased by 12% over the previous year, to $5,845.5 millions, in the reported quarter. The top line was also higher than the Zacks Consensus estimate of $5,505 millions.
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’s long-term debt was $2,591.6 at the end of the quarter, compared to $2,591.2 as of December 31, 2022.
Allison Transmission ALSN 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. Revenues of $741m grew 9% compared to the same period last year and exceeded the consensus figure of $715m.
Allison’s cash, cash equivalents and other assets were worth $344 millions on March 31, 2023. That was an increase from $232million at December 31, 2022. The long-term debt stood at $2,500 million, compared to $2.501 million on 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.
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