The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Oshkosh beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Oshkosh reported revenue of $1.88 billion. The 10 analysts polled by S&P Capital IQ looked for revenue of $1.86 billion. Sales were 10% higher than the prior-year quarter's $1.70 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.44. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.31 per share on the same basis. GAAP EPS of $0.42 for Q1 were 61% lower than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 11.8%, 690 basis points worse than the prior-year quarter. Operating margin was 4.0%, 660 basis points worse than the prior-year quarter. Net margin was 2.1%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.76 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $7.45 billion. The average EPS estimate is $1.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 822 members out of 886 rating the stock outperform, and 64 members rating it underperform. Among 270 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 262 give Oshkosh a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oshkosh is outperform, with an average price target of $24.67.
Over the decades, small-cap stocks like Oshkosh have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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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