Will Oshkosh Continue to Outperform After a Strong Quarter?

With shares of Oshkosh Corporation (NYSE:OSK) trading around $41.08, is the company an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalysts for the Stock’s Movement are Positive

Earnings reports are usually good for a flurry of trading activity, and Oshkosh’s fiscal first-quarter results were a shining example. Shares surged 18.8 percent after the report, closing the week up 22.3 percent and hitting a new 52-week high of $41.27 per share.

“We started the year strong with results that exceeded our expectations as we continued to execute our MOVE strategy,” chief executive Charlie Szews said. “MOVE provides a clear roadmap and targets for delivering shareholder value, and the Oshkosh team is working diligently to deliver against that roadmap.”

Oshkosh reported net income of $46.2 million, or $0.51 per share, a year-over-year gain of 18.6 percent, and smashing expectations by nearly 20 cents. Revenues decreased 6.31 percent to $1.76 billion, but still came in slightly ahead of expectations. Consolidated operating income grew to 4.6 percent of sales, or $80.6 million, compared to 4 percent of sales a year ago.

“Our strong first quarter performance and other positive developments, give us confidence to raise our full-year outlook for adjusted diluted earnings per share to a range of $2.80 to $3.05,” Szews added.