Q3 Earnings Highs And Lows: Oshkosh (NYSE:OSK) Vs The Rest Of The Heavy Transportation Equipment Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Oshkosh (NYSE:OSK) and the rest of the heavy transportation equipment stocks fared in Q3.
Heavy transportation equipment companies are investing in automated vehicles that increase efficiencies and connected machinery that collects actionable data. Some are also developing electric vehicles and mobility solutions to address customers’ concerns about carbon emissions, creating new sales opportunities. Additionally, they are increasingly offering automated equipment that increases efficiencies and connected machinery that collects actionable data. On the other hand, heavy transportation equipment companies are at the whim of economic cycles. Interest rates, for example, can greatly impact the construction and transport volumes that drive demand for these companies’ offerings.
The 14 heavy transportation equipment stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.2%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Oshkosh (NYSE:OSK)
Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Oshkosh reported revenues of $2.74 billion, up 9.2% year on year. This print exceeded analysts’ expectations by 2.8%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance topping analysts’ expectations but a miss of analysts’ adjusted operating income estimates.
“We are pleased to report solid third quarter performance with revenue growth of 9.2 percent and an adjusted operating margin of 10.3 percent, leading to adjusted earnings per share of $2.93,” said John Pfeifer, president and chief executive officer of Oshkosh Corporation.
Oshkosh Total Revenue
Oshkosh pulled off the highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 7.8% since reporting and currently trades at $93.84.
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE:CMI) offers engines and power systems.
Cummins reported revenues of $8.46 billion, flat year on year, outperforming analysts’ expectations by 1.8%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.
Cummins Total Revenue
The market seems happy with the results as the stock is up 7.8% since reporting. It currently trades at $351.38.
With its first trailer reportedly built on two sawhorses, Wabash (NYSE:WNC) offers semi trailers, liquid transportation containers, truck bodies, and equipment for moving goods.
Wabash reported revenues of $464 million, down 26.7% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
The stock is flat since the results and currently trades at $17.01.
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Blue Bird reported revenues of $350.2 million, up 15.6% year on year. This number topped analysts’ expectations by 1.8%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ sales volume and EBITDA estimates.
Blue Bird achieved the fastest revenue growth among its peers. The stock is down 8.6% since reporting and currently trades at $39.39.
Having designed the industry’s first double-decker railcar in the 1980s, Greenbrier (NYSE:GBX) supplies the freight rail transportation industry with railcars and related services.
Greenbrier reported revenues of $1.05 billion, up 3.5% year on year. This result met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also logged a solid beat of analysts’ EPS estimates.
The stock is up 21.2% since reporting and currently trades at $62.35.
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
