Why Shares of Oshkosh Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of equipment maker Oshkosh jumped 10% today after the company released second-quarter earnings.
So what: Revenue rose 2% to $2.20 billion, which was well ahead of the $2.10 billion expected from analysts. Net income more than doubled to $148.4 million, or $1.67 per share, also well ahead of estimates of $1.07 from Wall Street.
Now what: It should be no surprise that defense sales fell 8% and were the biggest drag on earnings this quarter. But access equipment, like scissor lifts and aerial platforms, rose 16% and showed some resiliency in the construction market. Shares now trade at 11 times trailing earnings and, given the momentum on the bottom line, I think there's still room for the stock to run.
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The article Why Shares of Oshkosh Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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