Oshkosh Q1 Tops Street View; Cuts FY22 Outlook On Inflationary Pressures, Supply Chain Woes

Oshkosh Corp OSK reported first-quarter FY22 sales growth of 3% year-on-year, to $1.95 billion, beating the consensus of $1.88 billion.
Sales from the Access Equipment segment increased 19.6% Y/Y, the Defense segment fell 12.9%, and Fire & Emergency declined 7.9%.
Gross margin for the quarter contracted by 630 basis points Y/Y to 10.3%. Operating margin was 1.5%, and operating income for the quarter fell 79.2% to $29.3 million.
The company held $944.5 million in cash and equivalents as of March 31, 2022. Net cash provided by operating activities for the quarter totaled $328.9 million.
Adjusted EPS of $0.24 beat the analyst consensus of $0.16.
Oshkosh Board declared a quarterly cash dividend of $0.37 per share, payable on May 27, 2022, to shareholders of record as of May 13, 2022.
"As a result of inflation, increased commodity and freight costs, and supply chain disruptions intensified by recent COVID lockdowns in China, we are lowering our fiscal 2022 outlook..," said CEO John C. Pfeifer.
Outlook: Oshkosh has cut the FY22 adjusted EPS outlook to $5.00 - $6.00 from the previously expected $5.75 - $6.75, below the consensus of $6.22.
The company also reduced FY22 operating income guidance to $475 million - $560 million from the prior view of $545 million - $625 million.
Price Action: OSK shares are trading lower by 3.29% at $91.26 on the last check Wednesday.

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