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 Oshkosh (NYSE: OSK ) dropped 10% today after reporting fiscal fourth-quarter earnings.
So what: Revenue fell 15.8% from a year ago to $1.73 billion, and net income fell 54% to $36.3 million, or $0.49 per share. The revenue figure was in line with estimates, but earnings fell $0.02 short.
Now what: Department of Defense spending is expected to hurt sales again next year, driving revenue to $6.6 billion to $6.9 billion, from $7.7 billion in 2013 according to guidance. Earnings for next year are expected to be $3.10-$3.40, down from $3.74 this year. Considering that its financial results are falling, and shares already trade at 14 times next year's earnings, Oshkosk doesn't quite look like a buying opportunity.
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