Oshkosh Earnings Preview

Motley Fool Staff
Updated

Oshkosh (NYS: OSK) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, April 26. Oshkosh, along with its subsidiaries, designs, manufactures, and markets a range of specialty vehicles and vehicle bodies including defense trucks, access equipment, fire and emergency vehicles, and concrete mixers and refuse collection vehicles.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Oshkosh, with six of nine rating it a buy and the remainder rating it a hold. Analysts like Oshkosh better than competitor Navistar International overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.

  • Revenue Forecasts: On average, analysts predict $1.81 billion in revenue this quarter. That would represent a rise of 3.4% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.25 per share. Estimates range from $0.18 to $0.36.

What our community says:
CAPS All-Stars are in strong support of the stock, with 96.3% granting it an "outperform" rating. Most of the community is in line with the All-Stars, with 92.8% assigning it a rating of "outperform." Even with a robust four out of five stars, Oshkosh's CAPS rating falls a little short of the community's upbeat outlook.


Management:
Oshkosh's income has fallen year-over-year by an average of 68.3% over the past five quarters. The company's revenue has now risen for two straight quarters. The company's gross margin shrank by 6.3 percentage points in the last quarter. Revenue rose 10.5% while cost of sales rose 19% to $1.66 billion from a year earlier.

Now, a look at how efficient management has been at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Oshkosh has seen slipping net margins year-over-year for the last four quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. Here are Oshkosh's reported margins for the last four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

11.8%

10.3%

13.4%

16.1%

Operating Margin

4.0%

3.5%

6.2%

7.6%

Net Margin

2.1%

1.8%

3.4%

3.9%

For all our Oshkosh-specific analysis, including earnings and beyond, add Oshkosh to My Watchlist.

At the time thisarticle was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement