Oshkosh Raises FY16 Outlook; Sees FY17 EPS Below View; Stock Down

(RTTNews) - Oshkosh Corp. (OSK), a manufacturer of specialty vehicles and vehicle bodies, said that it now believes it will deliver stronger than previously expected performance in the fiscal fourth quarter of 2016 as a result of expected higher deliveries of M-ATVs in the Company's defense segment, access equipment segment sales at the high end of prior expectations and a lower tax rate. The company raised its fiscal 2016 financial estimates and expects to deliver year-over-year growth in revenue, operating income and earnings per share in fiscal 2017.

"Longer-term, we expect strong free cash flow over the cycle to provide capital allocation alternatives that will benefit our shareholders. We expect to achieve our fiscal 2017 estimates through the continued execution and evolution of our MOVE strategy, which has delivered for customers and shareholders alike over the last several years. We look forward to sharing more about our objectives and plans to continue driving shareholder value this morning during our Analyst Day," said Wilson Jones, Oshkosh Corporation president and chief executive officer.

Looking to next year, the company anticipates increases in revenue, operating income and earnings per share despite expected lower sales and operating income in our access equipment segment.

In the pre-Market trade, OSK is currently trading at $55.00, down $1.90 or 3.34 percent.

The Company's updated estimates for fiscal 2016 include adjusted earnings per share of $2.85 to $3.00, adjusted operating income of $360 million to $375 million, and revenues of $6.1 billion to $6.2 billion. Analysts polled by Thomson Reuters expect the company to report earnings of $2.78 per share and revenues of $6.1 billion for fiscal year 2016. Analysts' estimates typically exclude special items.

Previously, the company expected fiscal 2016 earnings per share to be in the range of $2.60 to $2.80 on projected net sales of $6.0 billion to $6.1 billion and operating income of $340 million to $360 million.

Looking ahead for fiscal 2017, the company anticipates earnings per share in the range of $3.00 to $3.40, Operating income of $390 million to $430 million, and revenues of $6.5 billion to $6.7 billion. Wall Street currently is looking for fiscal year 2017 earnings of $3.56 per share on annual revenues of $6.66 billion.

At the Company's Analyst Day, the Oshkosh leadership team will review each of its four business segments and provide updates on expected segment performance in fiscal 2016 as well as discuss each segment's initial outlook for fiscal 2017, the company said.

Fiscal 2016 adjusted results exclude expected restructuring charges of $27.0 million resulting from the Company's decision to outsource certain aftermarket parts distribution center and logistics operations in the U.S. and Europe in the Company's access equipment segment. The Company expects the EPS impact of these restructuring charges in fiscal 2016 will be $0.23. The Company expects to finalize the amounts of the charges resulting from these actions in the next several weeks, so actual amounts may be slightly different.