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 heavy-duty vehicle manufacturer Oshkosh (NYSE: OSK ) climbed 12% today after its quarterly results and outlook topped Wall Street expectations.
So what: The stock has struggled over the past few years on weak demand for its defense products, but Oshkosh's first-quarter -- EPS of $0.51 versus $0.43 in the year-ago period -- coupled with upbeat full-year guidance reinforces recent optimism over a prolonged turnaround. Although the defense segment continues to weigh heavily on revenue, Oshkosh's margins are being boosted nicely by nondefense products like fire and emergency equipment.
Now what: Management now sees 2013 adjusted EPS of $2.80-$3.05, well above its prior view of $2.35-$2.60. "Each of our non-defense segments improved its operating income margins compared to the prior year quarter, favorably positioning our company to deliver on our long-range goals," said CEO Charlie Szews. With the stock now up almost 100% over just the past six months, however, much of that bullishness might already be baked into the price.
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