This defense contractor has a bright future with hefty new military contracts, but shares are very sold-off.
Oshkosh Corporation (OSK)
From New Century Report
Oshkosh Corporation (OSK), the heavy vehicle manufacturer for the military, emergency, and commercial companies posted revenue of $2.06 billion in the period, which also beat Wall Street forecasts.
Seven analysts surveyed by Zacks expected $1.98 billion.
4Q 2018 Financial Summary:
• Fourth-quarter profit of $151.3 million.
• Profit was at $2.05 per share.
• Earnings, adjusted for nonrecurring gains, were $1.78 per share.
• For the year, the company reported a profit of $471.9 million, $6.29 per share. Revenue was reported as $7.71 billion.
The results exceeded Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $1.45 per share.
Oshkosh shares have decreased by 38% since the beginning of the year. However, OSK was one of the rare stocks that closed out the previous four weeks trading at a better place than it’d started:
Remember the big picture situation here: The JLTV contract. The contract will put Oshkosh into the vanguard of heavy equipment suppliers for the U.S. defense industry for at least the next few decades. Nancy’s Note: In June, the U.S. Army ordered $484 million 1,574 Joint Light Tactical Vehicles (JLTV) and associated installed and packaged kits. And on November 28, it was announced that the U.S. Army has ordered 6,107 vehicles and associated installed and packaged kits under the program, worth $1.69 billion. It is the 10th order under the program since the contract was awarded in August 2015. Oshkosh has produced more than 2,600 JLTVs and has delivered more than 1,600 JLTVs to the U.S. Army and Marine Corps
We’ll continue to buy Oshkosh Corporation.
Alex Koyfman, New Century Report, www.angelpub.com, 877-303-4529, November 15, 2018