Transmission provider Allison Transmission (NYSE: ALSN) will be announcing earnings results this Monday after market hours. Here’s what to expect.
Allison Transmission beat analysts’ revenue expectations last quarter, reporting revenues of $737 million, down 7.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.
Is Allison Transmission a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Allison Transmission’s revenue to grow 78.9% year on year, a reversal from the 2.9% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Allison Transmission’s peers in the heavy transportation equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Federal Signal delivered year-on-year revenue growth of 34.9%, beating analysts’ expectations by 8%, and PACCAR reported a revenue decline of 8.9%, falling short of estimates by 0.9%. Federal Signal traded up 10.2% following the results while PACCAR was down 7.1%.
Read our full analysis of Federal Signal’s results here and PACCAR’s results here.
There has been positive sentiment among investors in the heavy transportation equipment segment, with share prices up 9.4% on average over the last month. Allison Transmission is up 11.7% during the same time and is heading into earnings with an average analyst price target of $133.30 (compared to the current share price of $131.22).
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