Oshkosh Q4 Earnings Beat Expectations Despite EPS Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9h ago
0mins
Source: seekingalpha
- Earnings Highlights: Oshkosh's Q4 non-GAAP EPS of $2.26 misses by $0.05, yet revenue of $2.69 billion, reflecting a 2.7% year-over-year increase, beats expectations by $90 million, indicating resilience in revenue growth despite EPS shortfall.
- Operating Income Decline: Adjusted operating income for Q4 decreased by 7.9% to $225.9 million, or 8.4% of sales, compared to $245.4 million and 9.4% in Q4 2024, highlighting the impact of cost pressures on profitability.
- Future Guidance: Oshkosh initiates 2026 EPS guidance in the range of $10.90 to $11.50, below the consensus of $12.33, reflecting a cautious outlook on future profitability amid market uncertainties.
- Military Order: Oshkosh Defense secures a $53 million order from the U.S. Army for Common Bridge Transporters, further solidifying its market position in the defense sector.
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Analyst Views on OSK
Wall Street analysts forecast OSK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OSK is 152.40 USD with a low forecast of 132.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 146.160
Low
132.00
Averages
152.40
High
180.00
Current: 146.160
Low
132.00
Averages
152.40
High
180.00
About OSK
Oshkosh Corporation is an industrial company focused on the designing, development and manufacturing of purpose-built vehicles and equipment. It operates through three segments. Access segment designs and manufactures access and material handling equipment for use in a range of construction, industrial, agricultural, vegetation management, and maintenance applications to position workers and materials at height under brands, JLG and SkyTrak. The segment's customer base includes equipment rental companies, construction contractors, manufacturing companies and home improvement centers. The segment also includes Jerr-Dan towing and recovery vehicles. Defense segment designs, manufactures and sustains specialty vehicles and mobility systems for the United States Department of Defense and exports tactical wheeled vehicles to approved foreign customers. Vocational segment includes the Pierce, Maxi-Metal, McNeilus, AeroTech, IMT, Frontline Communications and Oshkosh S-Series businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oshkosh Scheduled to Announce Q4 Earnings on January 29
- Earnings Announcement: Oshkosh is set to release its Q4 earnings on January 29 before market open, with consensus EPS estimate at $2.31, reflecting a 10.5% year-over-year decline, and revenue estimate at $2.6 billion, down 0.8% year-over-year, indicating market challenges ahead.
- Historical Performance: Over the past two years, Oshkosh has beaten EPS estimates 88% of the time and revenue estimates 75% of the time, showcasing relative stability in financial performance, although current expectations suggest downward pressure.
- Estimate Revisions: In the last three months, EPS estimates saw no upward revisions and 13 downward revisions, while revenue estimates had one upward revision and nine downward revisions, reflecting analysts' cautious outlook on the company's future performance, which may impact investor confidence.
- New Orders and Ratings: Oshkosh Defense secured a $53 million order from the U.S. Army, and Barclays has rated the company as Overweight, anticipating strong margin growth despite the overall uncertain market environment.
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Oshkosh Increases Quarterly Dividend by 11.8%
- Dividend Increase: Oshkosh has declared a quarterly dividend increase from $0.51 to $0.57 per share, marking an 11.8% rise that reflects the company's ongoing improvement in profitability and cash flow management.
- Yield Metrics: Following this increase, Oshkosh's forward dividend yield stands at 1.56%, providing investors with a relatively stable return and enhancing its attractiveness in the current market environment.
- Payment Schedule: The new dividend will be payable on March 3, with a record date of February 17 and an ex-dividend date also set for February 17, ensuring that existing shareholders benefit from this increase.
- Historical Context: Oshkosh has consistently paid a quarterly dividend of $0.51 over the past four quarters, and this increase demonstrates the company's confidence in its future financial health, potentially attracting more long-term investors.
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