Shares of the specialty trucks and military vehicles manufacturer, Oshkosh Corporation, rose more than 27% in the month of November according to data provided by S&P Global Market Intelligence. Meanwhile, the broader market plummeted.
Why the stark performance diversion?
Despite being one of the most underappreciated companies in the industrial sector, Oshkosh started November with an earnings release that widely exceeded analyst expectations.
The company reported 13% sales growth, 67% earnings growth, and reported new full-fiscal-year guidance which even at its low-end was above consensus. Even the company’s non-government units reported some exemplary growth numbers, such as the 103% y-o-y growth in access equipment operating income and 52.6% y-o-y operating income growth in the commercial equipment segment.
However, the icing on the cake came on November 28, when Oshkosh's defense arm announced a $1.7 billion order from the U.S. Army for 6,107 Joint Light Tactical Vehicles (JLTV). JLTV has been an integral part of Oshkosh's push to build its military sales portfolio.