Transmission provider Allison Transmission (NYSE:ALSN) will be announcing earnings results tomorrow after market close. Here’s what you need to know.
Allison Transmission beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $824 million, up 12% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Allison Transmission a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Allison Transmission’s revenue to grow 1.3% year on year to $785 million, slowing from the 7.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.93 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allison Transmission has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Allison Transmission’s peers in the heavy transportation equipment segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cummins’s revenues decreased 1.1% year on year, beating analysts’ expectations by 4.7%, and Oshkosh reported revenues up 6.3%, topping estimates by 8.6%. Cummins traded up 6.2% following the results while Oshkosh was also up 21.6%.
Read our full analysis of Cummins’s results here and Oshkosh’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 2.6% on average over the last month. Allison Transmission is up 3.3% during the same time and is heading into earnings with an average analyst price target of $111.20 (compared to the current share price of $115.98).
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