On Thursday, Oshkosh Corp (NYSE:OSK) shares advanced 1.03% after announcing its most recent quarterly results. The company reported its fiscal fourth-quarter 2021 earnings before markets opened, beating the consensus for analyst expectations. However, its revenue for the quarter fell below estimates despite growth by 15.7% from the same period a year ago.
The company posted FQ4 non-GAAP earnings per share of $1.05, beating the average analyst estimate of $0.93. In addition, its GAAP EPS of $1.30, outperformed the expectation of $0.98, while the revenue of $2.06 billion, was $20 million below estimates.
The company maintained a cautious approach to 2022, deciding against issuing guidance amid the uncertainty created by supply chain constraints.
Oshkosh looks undervalued
From an investment perspective, Oshkosh shares trade at compelling trailing 12-month and forward P/E ratios of 14.82 and 12.26, respectively. Therefore, the stock could be an attractive option for value investors.
In addition, analysts expect the company’s earnings per share to grow at an average annual rate of about 21.26% over the next five years, thus gaining the attention of long-term investors.
Source – TradingView
Technically, Oshkosh shares seem to have recently pulled back after finding the trendline resistance. However, the stock is still far from reaching oversold conditions whilst remaining several levels above the trendline support.
Therefore, investors could target extended declines at about $100.73, or lower at $96.31. On the other hand, if the stock completes an upward breakout, it could find resistance at $108.81, or higher at $113.23.
A breakout seems inevitable
In summary, although Oshkosh shares recently pulled back after finding the trendline resistance, Thursday’s post-earnings gain could drive the stock higher triggering a channel breakout.
Therefore, given the company’s exciting growth prospects and compelling valuation multiples, it may not be too late to invest in Oshkosh shares.
The post Is it safe to buy Oshkosh shares as FQ4 revenue falls short of the Street forecast? appeared first on Invezz.