Oshkosh Corp. (NYSE:OSK) reported higher fiscal third quarter net income, revenue and operating income before the market opened on Thursday, August 1, primarily due to its fire and emergency equipment business offsetting lower defense segment results.
Net income was $191.9 million or $2.72 per diluted share, compared with $153.4 million, or $2.05 per diluted share in the same quarter a year ago, which included several one-time charges.
Consolidated net sales in the third quarter of fiscal 2019 increased 10.0 percent to $2.39 billion on higher sales in all segments.
Consolidated third quarter operating income increased 15.5 percent to $257.8 million, or 10.8 percent of sales, compared to $223.2 million, or 10.3 percent of sales, in the third quarter of fiscal 2018.
The Wisconsin-based maker of specialty vehicles and vehicle bodies beat the consensus estimate of 18 analysts, who expected earnings per share of $2.37 on $2.29 billion in revenue.
Share repurchases
Oshkosh directors on May 7 approved an increase in stock repurchases to 10 million shares. The company repurchased 1,166,914 shares in the third quarter.
Earnings per share benefited from share repurchases over the previous 12 months, increasing by $0.18 compared with the same quarter in fiscal 2018.
The company raised full-year expectations on EPS to a range of $7.80 to $8.00 per diluted share and declared a $0.27 per share quarterly dividend.
Humvee replacement
During the quarter, the U.S. Army greenlighted full production of the Joint Light Tactical Vehicle (JLTV). The JLTV eventually will replace the Humvee as the main military transportation in dangerous areas.
“This is an important milestone as the program matures and we continue to ramp up production and delivery of these vehicles over the next several years,” Oshkosh CEO Wilson Jones said in a statement.
On a call with analysts, Jones said that in addition to U.S. military sales, the JLTV has international prospects. The United Kingdom potentially could order up to 3,000 units. Slovenia has a pending order for 38 units. Some orders could come in 2020, but Jones said 2021 is more likely.