Oshkosh’s Bottom Line Rose in 2Q16
Yesterday’s Consumer Pops and Drops: HAR, SEE, and OSK
Price movement of Oshkosh
Oshkosh Corporation (OSK) has a market cap of $3.5 billion. OSK rose by 13.3% to close at $47.36 per share as of April 28, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 19.9%, 15.9%, and 22.1%, respectively, as of the same day.
This means that OSK is trading 18.8% above its 20-day moving average, 23.9% above its 50-day moving average, and 24.0% above its 200-day moving average.
Related ETFs and peers
The PowerShares Aerospace & Defense Portfolio (PPA) invests 1.0% of its holdings in Oshkosh. The ETF tracks a market-cap-weighted index of US-listed stocks involved in the defense, military, homeland security, and space industries. The YTD price movement of PPA was 4.0% as of April 27, 2016.
The iShares Morningstar Small Value ETF (JKL) invests 0.64% of its holdings in Oshkosh. The ETF tracks a market-cap-weighted index of US small cap value stocks. The index tracks stocks from the 90th to the 97th percentile of the market-cap spectrum, using fundamental factors.
The market caps of Oshkosh’s competitors are as follows:
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Terex Corporation (TEX): $2.6 billion
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Caterpillar (CAT): $45.5 billion
Performance of Oshkosh in fiscal 2Q16
Oshkosh Corporation (OSK) reported fiscal 2Q16 net sales of $1,524.3 million, a fall of 1.9% compared to net sales of $1,554.2 million in fiscal 2Q15. Its net income and EPS (earnings per share) rose to $56.1 million and $0.76, respectively, in fiscal 2Q16, compared to $54.5 million and $0.69, respectively, in fiscal 2Q15.
Oshkosh’s cash and cash equivalents fell by 10.5%, and its inventories rose by 5.5% in fiscal 2Q16 compared to fiscal 4Q15. Its current ratio fell to 1.6x and debt-to-equity ratio rose to 1.5x in fiscal 2Q16, compared to a current ratio and a debt-to-equity ratio of 1.7x and 1.4x, respectively, in fiscal 4Q15.
The company has declared a quarterly cash dividend of $0.19 per share of its common stock. The dividend will be paid on May 31, 2016, to shareholders of record at the close of business on May 16, 2016.
Projection
The company has made the following projections for fiscal 2016:
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net sales in the range of $5.7 billion–$6.0 billion
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EPS in the range of $2.30–$2.70
This projection reflects lower estimated tax rate as a result of discrete tax benefits in fiscal 2Q16 and increased expectation from defense segment results, partially offset by higher corporate costs.
In the next part, we’ll discuss Pilgrim’s Pride.
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