Oshkosh Profit Up Amid Lower Sales, Lifts FY Outlook; Stock Up - Update

(RTTNews) - Specialty vehicle maker Oshkosh Corp. (OSK), Tuesday reported an increase in profit for the first quarter, due mainly on improved margins even as sales slid 13 percent following a slump at the defense segment. Both earnings and revenues for the quarter topped Wall Street estimates.

For fiscal year 2014, Oshkosh lifted its earnings guidance, partly due to a stronger-than-expected performance in the recent quarter, while tightening sales expectations.

The company said growth prospects in 2014 hinges on non-defense segments: access equipment, fire and emergency, and commercial.

The results lifted investor sentiment, sending Oshkosh shares surging 10 percent in morning trade on the New York Stock Exchange.

The company, based in Oshkosh, Wisconsin, posted quarterly net income to common shareholders of $54.7 million or $0.63 per share, compared with $46 million or $0.51 per share last year.

Excluding items, adjusted earnings for the quarter were $55 million or $0.63 per share, compared with $56.7 million or $0.62 per share in the prior year.

On average, 15 analysts polled by Thomson Reuters expected earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the dropped to $1.53 billion from $1.75 billion in the prior year. Twelve analysts had a consensus sales estimate of $1.46 billion for the quarter.

Replacement demand from access equipment in North America somewhat offset a decline in defense segment, the company said.

Oshkosh noted that European rental companies began placing orders for access equipment earlier in the fiscal year, indicating a stronger recovery for the products in the economically troubled region.

For fiscal year 2014, Oshkosh now expect earnings in the range of $3.40 to $3.65 per share, up from a prior range of $3.10 to $3.40 per share. Sales are now forecast between $6.65 billion and $6.85 billion, compared with a prior range of $6.6 billion and $6.9 billion.

Analysts currently expect earnings of $3.35 per share on sales of $6.79 billion for 2014.

For fiscal year 2015, Oshkosh continues to expect earnings in the range of $4 to $4.50 per share, while analysts currently expect $4.28 per share.

Oshkosh also declared a quarterly cash dividend of $0.15 per share, payable on February 27 to shareholders of record as of February 13.

Oshkosh stock is trading at $56.75, up $5.34 or 10.39%, on a volume of 1 million shares. In the past year, the stock has trended in a range of $33.88 - $58.50.