Allison Transmission Holdings, Inc. (NYSE:ALSN) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.3% to hit US$824m. Allison Transmission Holdings reported statutory earnings per share (EPS) US$2.27, which was a notable 12% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Allison Transmission Holdings

Taking into account the latest results, the current consensus from Allison Transmission Holdings' ten analysts is for revenues of US$3.34b in 2025. This would reflect an okay 4.2% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 9.9% to US$9.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.33b and earnings per share (EPS) of US$9.17 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.3% to US$104. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Allison Transmission Holdings, with the most bullish analyst valuing it at US$128 and the most bearish at US$77.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Allison Transmission Holdings' past performance and to peers in the same industry. We would highlight that Allison Transmission Holdings' revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2025 being well below the historical 6.3% p.a. growth over the last five years. Compare this to the 177 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.0% per year. So it's pretty clear that, while Allison Transmission Holdings' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Allison Transmission Holdings analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Allison Transmission Holdings that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.