Transmission provider Allison Transmission (NYSE:ALSN) will be announcing earnings results tomorrow after market close. Here’s what investors should know.

Allison Transmission beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $816 million, up 4.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin 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 7.3% year on year to $790 million, improving from the 3.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.98 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 4 upward revisions over the last 30 days (we track 8 analysts). Allison Transmission has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3% on average.

Looking at Allison Transmission’s peers in the heavy transportation equipment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PACCAR’s revenues decreased 6.4% year on year, beating analysts’ expectations by 1.4%, and Greenbrier reported revenues up 3.5%, in line with consensus estimates. PACCAR traded down 5.3% following the results while Greenbrier was up 16.7%.

Read our full analysis of PACCAR’s results here and Greenbrier’s results here.

Investors in the heavy transportation equipment segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Allison Transmission is down 2.2% during the same time and is heading into earnings with an average analyst price target of $97.40 (compared to the current share price of $94).

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