The 10-second takeaway
For the quarter ended March 31 (Q2), Oshkosh beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Oshkosh logged revenue of $2.08 billion. The 11 analysts polled by S&P Capital IQ foresaw a top line of $1.78 billion on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $1.75 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. GAAP EPS of $0.41 for Q2 were 45% lower than the prior-year quarter's $0.74 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.5%, 440 basis points worse than the prior-year quarter. Operating margin was 3.7%, 360 basis points worse than the prior-year quarter. Net margin was 1.8%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $7.74 billion. The average EPS estimate is $1.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 804 members out of 866 rating the stock outperform, and 62 members rating it underperform. Among 239 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 231 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 $28.64.
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.
- Add Oshkosh to My Watchlist.
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.
More from The Motley Fool
3 Stocks That Turned $7,000 Into $55,000
And they managed that outperformance in less than ten years...and still have room for growth.
These 3 Stocks Grew 25% in 2017, and They Aren't Slowing Down
And no, the third one is not a children's clothing company.
Why 1 of These 5 U.S. Manufacturing Stocks Lost Big in October
It was a good month for many big U.S. manufacturers. You'll never guess which one stumbled.