Allison Transmission (ALSN) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing ear ...

Company Overview - Allison Transmission Holdings, Inc. is based in Indianapolis and specializes in designing and manufacturing vehicle propulsion systems, primarily fully automatic transmissions and electric hybrid systems [3] - The company generates revenue mainly from North America, with additional income from off-highway applications and the defense sector, indicating a diversified revenue stream [3][4] Q2 Earnings Results - In Q2, Allison reported record net sales of $816 million, a 4% year-over-year increase, driven by strong performance in the North American On-Highway segment, which saw a 15% increase to $456 million [8] - The defense market experienced a 30% year-over-year increase in net sales, attributed to heightened demand for tracked vehicle applications [8] - Earnings per share (EPS) rose 11% year-over-year to $2.13, surpassing the consensus estimate of $2.03 [8] Revenue Breakdown - For 2023, revenue from different segments includes: - North America On-highway: $1.53 billion - Service Parts, Support Equipment and Other: $696 million - Outside North America On-highway: $477 million - Defense: $166 million - Outside North America Off-highway: $104 million - North America Off-highway: $63 million [4] Market Challenges - The European market faced revenue declines due to price pressures from competitors like ZF, Voith, and Shaanxi Fast Gear, with the latter being a significant player due to lower manufacturing costs [7] - Supply chain disruptions, particularly in securing materials for transmission systems, were noted, with management citing geopolitical factors as contributing to these challenges [7] - The North American Off-Highway segment did not perform as well, experiencing a year-over-year decline of $24 million [7] Management Outlook - Management raised their 2024 guidance for revenue, earnings, and cash flow, indicating optimism despite current challenges [9] - However, concerns were raised regarding the lack of insider buying activity, which may suggest management's uncertainty about the current share price [9][10] - The company is currently trading at a price-to-earnings ratio of 11.51x, which is 50% below the industrials sector average, indicating attractive valuation ratios [10]

Investors interested in stocks from the Automotive - Original Equipment sector have probably already heard of Allison Transmission (ALSN) and Ferrari (RACE) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stoc ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Allison Transmission Holdings (ALSN) delivered second-quarter 2024 earnings of $2.13 per share, which rose 11% year over year and beat the Zacks Consensus Estimate of $2.04. Record quarterly revenues of $816 million grew 4% from the year-ago period's level and outpaced the Zacks Consensus Estimate of $799 million.Segmental PerformanceAllison segregates revenues in terms of end markets served, which are as follows:In the reported quarter, net sales in the North America On-Highway end market rose 14.8% year o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35456 | --- | --- | |-------------------------------------------------------------------------------------------|--------------------------| | ALLISON TRANS ...

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For the quarter ended June 2024, Allison Transmission (ALSN) reported revenue of $816 million, up 4.2% over the same period last year. EPS came in at $2.13, compared to $1.92 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $798.74 million, representing a surprise of +2.16%. The company delivered an EPS surprise of +4.41%, with the consensus EPS estimate being $2.04.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Allison Transmission Holdings, Inc. (NYSE:ALSN) Q2 2024 Earnings Conference Call July 25, 2024 5:00 PM ET Company Participants Jackie Bolles - Executive Director, Treasury and IR Dave Graziosi - Chairman and CEO Fred Bohley - Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants Tim Thein - Raymond James Rob Wertheimer - Melius Research Ian Zaffino - Oppenheimer Angel Castillo - Morgan Stanley Tami Zakaria - JPMorgan Luke Junk - Baird Jerry Revich - Goldman Sachs Kyle Men ...

Q2 2024 Financial Performance - Net sales increased by 4% to $816 million, driven by strength in North America On-Highway, Defense, and Outside North America On-Highway end markets[12, 16] - Gross profit increased by 3% to $394 million, due to price increases and higher net sales, partially offset by higher manufacturing expenses[12, 16] - Net income increased by 7% to $187 million, driven by higher gross profit, lower selling, general and administrative expenses, and lower net interest expense[12, 16] - Adjusted EBITDA increased by 5% to $301 million, primarily driven by higher gross profit[12, 15] - Diluted earnings per share increased by 11% to $2.13, driven by higher net income and lower total shares outstanding[12, 16] Q2 2024 Sales by End Market - North America On-Highway net sales increased by 15% to $456 million, driven by demand for Class 8 vocational vehicles and medium-duty trucks[12, 14] - Defense net sales increased by 30% to $43 million, driven by increased demand for Tracked vehicle applications[12, 14] - Outside North America On-Highway net sales increased by 4% to $128 million, driven by higher demand in Asia[12, 14] - North America Off-Highway net sales decreased by 96% to $1 million, driven by lower demand in the energy sector[14] - Service Parts, Support Equipment & Other net sales decreased by 8% to $166 million, driven by lower demand for North America service parts and aluminum die cast components[14] Cash Flow Performance - Net cash provided by operating activities increased by 21.3% to $171 million, driven by lower cash income taxes and higher gross profit[17] - Adjusted Free Cash Flow increased by 23.0% to $150 million, driven by higher net cash provided by operating activities[17] 2024 Guidance Update - The company is increasing full year 2024 net sales guidance to a range of $3,090 million to $3,170 million[19, 20] - The company is increasing full year 2024 net income guidance to a range of $650 million to $700 million[19, 20] - The company is increasing full year 2024 adjusted EBITDA guidance to a range of $1,085 million to $1,145 million[19, 20] - The company is increasing full year 2024 adjusted free cash flow guidance to a range of $590 million to $640 million[19, 20]