It has been about a month since the last earnings report for Oshkosh (OSK). Shares have added about 10.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Oshkosh due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Oshkosh Q3 Earnings Beat Expectations

Oshkosh reported third-quarter adjusted earnings of $2.93 per share, which beat the Zacks Consensus Estimate of $2.87. The bottom line, however, declined from $3.04 recorded in the year-ago period. Consolidated net sales climbed 9% year over year to $2.74 billion. The top line also surpassed the Zacks Consensus Estimate of $2.63 billion.

Segmental Details

Access: The segment’s net sales rose 3.4% year over year to $1.36 billion and surpassed the Zacks Consensus Estimate of $1.29 billion due to improved sales volume in North America.

Operating income fell 9.6% to $207.9 million (accounting for 15.2% of sales) due to higher material costs and selling, general and administrative expenses. The metric, however, surpassed the Zacks Consensus Estimate of $196 million.

Defense: The segment’s net revenues increased 13.9% year over year to $540.4 million and surpassed the Zacks Consensus Estimate of $504 million due to higher sales volume of aftermarket parts and Family of Heavy & Medium Tactical Vehicle and NGDV production.

The segment reported an operating income of $11.2 million, which fell 43.1% year over year due to cumulative catch-up adjustments on contract margins. However, the figure surpassed the Zacks Consensus Estimate of $4.43 million.

Vocational: The segment’s net sales rose 17.6% year over year to $814.2 million due to the inclusion of sales related to AeroTech’s acquisition and improved price and organic sales volume. The metric, however, missed the Zacks Consensus Estimate of $825 million.

Operating income surged 89.7% to $99.6 million (accounting for 12.2% of sales) due to enhanced price/cost dynamics but missed the Zacks Consensus Estimate of $106 million.

Financials

Oshkosh had cash and cash equivalents of $160.9 million as of Sept. 30, 2024, compared with $125.4 million as of Dec. 31, 2023. The company recorded a long-term debt of $602.3 million, up from $597.5 million as of Dec. 31, 2023.

OSK declared a quarterly cash dividend of 46 cents per share. The dividend will be paid out on Nov. 29, 2024, to shareholders of record as of Nov. 15, 2024.

Revised 2024 Guidance

The company anticipates full-year 2024 sales to be around $10.6 billion, down from the previous expectation of $10.7 billion. It now expects adjusted earnings per share to be $11.35, down from the prior guidance of $11.75.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

Currently, Oshkosh has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Oshkosh has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Oshkosh belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Gentex (GNTX), has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

Gentex reported revenues of $608.53 million in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $0.53 for the same period compares with $0.45 a year ago.

For the current quarter, Gentex is expected to post earnings of $0.48 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Gentex. Also, the stock has a VGM Score of C.

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