Allison Transmission ALSN is preparing to release its quarterly earnings on Tuesday, 2024-10-29. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Allison Transmission to report an earnings per share (EPS) of $1.99.
Allison Transmission bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Overview of Past Earnings
During the last quarter, the company reported an EPS beat by $0.11, leading to a 3.97% increase in the share price on the subsequent day.
Here's a look at Allison Transmission's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 2.02 | 1.89 | 1.43 | 1.72 |
| EPS Actual | 2.13 | 1.90 | 1.91 | 1.76 |
| Price Change % | 4.0% | -7.000000000000001% | 14.000000000000002% | -10.0% |
Stock Performance
Shares of Allison Transmission were trading at $98.49 as of October 25. Over the last 52-week period, shares are up 96.86%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on Allison Transmission
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Allison Transmission.
The consensus rating for Allison Transmission is Neutral, derived from 2 analyst ratings. An average one-year price target of $104.5 implies a potential 6.1% upside.
Peer Ratings Overview
This comparison focuses on the analyst ratings and average 1-year price targets of Oshkosh, Terex and Atmus Filtration Techs, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Oshkosh is maintaining an Neutral status according to analysts, with an average 1-year price target of $123.8, indicating a potential 25.7% upside.
- Terex is maintaining an Neutral status according to analysts, with an average 1-year price target of $64.0, indicating a potential 35.02% downside.
- The consensus outlook from analysts is an Outperform trajectory for Atmus Filtration Techs, with an average 1-year price target of $43.4, indicating a potential 55.93% downside.
Insights: Peer Analysis
Within the peer analysis summary, vital metrics for Oshkosh, Terex and Atmus Filtration Techs are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Allison Transmission | Neutral | 4.21% | $394M | 13.23% |
| Oshkosh | Neutral | 17.98% | $546.10M | 4.35% |
| Terex | Neutral | -1.53% | $328.40M | 7.91% |
| Atmus Filtration Techs | Outperform | 4.59% | $131.90M | 37.48% |
Key Takeaway:
Allison Transmission ranks in the middle for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, but at the top for Return on Equity among its peers.
About Allison Transmission
Allison Transmission is the largest manufacturer of fully automatic transmissions for commercial vehicles. The company's automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business has about 60% global market share. The company's transmissions can be found in Class 4-8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motor homes). Allison also produces electric hybrid propulsion systems and is developing e-powertrains.
Understanding the Numbers: Allison Transmission's Finances
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Allison Transmission's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 4.21%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Allison Transmission's net margin excels beyond industry benchmarks, reaching 22.92%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Allison Transmission's ROE stands out, surpassing industry averages. With an impressive ROE of 13.23%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Allison Transmission's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.66% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Allison Transmission's debt-to-equity ratio stands notably higher than the industry average, reaching 1.62. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Allison Transmission visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
