Douglas Sacha/Moment via Getty Images Is ALSN still a Buy? Allison Transmission Inc, (NYSE:ALSN) reported earnings last week on 2/13/2024 and blew expectations out of the water. EPS Normalized Actual came in at $2.04, beating expectations by $0.54. EPS GAAP Actual came in at $1.91, beating by $0.46. ALSN also celebrated a Revenue surprise of $30.42M for a Revenue Actual of $775.00M. As a result, ALSN shares traded nearly 20% post market hours and settled back down to around $71 today. The question becomes i ...

Allison Transmission Holdings (ALSN) delivered fourth-quarter 2023 earnings of $1.91 per share, which rose 25.6% year over year and topped the Zacks Consensus Estimate of $1.42. The outperformance can be attributed to higher-than-expected sales from North America On-Highway, Defense and Outside North America Off-Highway end markets. Record quarterly revenues of $775 million grew 8% from the year-ago period and outpaced the Zacks Consensus Estimate of $755 million.Thanks to robust results, shares of ALSN ral ...

The auto sector tends to have promising companies with strong growth narratives due to their essentiality. Following their favorable fourth quarter reports this week Allison Transmission (ALSN)  and Goodyear Tire (GT)  are starting to fit this description and also stand out in terms of value.With that being said, here’s a look at their quarterly results and an overview of why now is an ideal time to buy these top-rated auto stocks.Allison’s Intriguing Growth & Value As the world’s largest producer of fully ...

Shares of Allison Transmission (ALSN 13.91%) soared 13.9% on Wednesday after the commercial-duty transmission manufacturer announced strong fourth-quarter results.Allison Transmission caps a record yearAllison Transmission's fourth-quarter 2023 revenue grew 7.9% year over year to $775 million, translating to a 26% increase in net income to $170 million, or $1.91 per share. Wall Street analysts, on average, were only expecting quarterly earnings of $1.43 per share on revenue of $745 million.Company Chairman ...

Financial Data and Key Metrics Changes - In Q4 2023, net sales increased 8% year-over-year to a record $775 million, contributing to a full year record of $3,035 million, a 10% increase from 2022 [7][10] - Adjusted EBITDA for 2023 rose to $1,108 million, with an adjusted EBITDA margin expanding by 180 basis points from 2022 [8] - Net income for Q4 2023 was $170 million, a 21% increase from $141 million in Q4 2022, while full year net income increased 27% year-over-year to $673 million [11][8] - Diluted EPS for 2023 reached a record $7.40, up 34% from 2022 [9] Business Line Data and Key Metrics Changes - North America On-Highway end market saw a 13% year-over-year increase, driven by demand for Class 8 vocational and medium-duty trucks [7] - Service parts and support equipment revenue increased by 18% year-over-year, reaching nearly $700 million [8] - Defense end market revenue for Q4 2023 was $63 million, with full year revenue of $166 million, a 14% increase from 2022 [19] Market Data and Key Metrics Changes - North American On-Highway market is expected to remain strong, supported by infrastructure spending [15] - Outside North America On-Highway market is projected to grow by 14% year-over-year at the midpoint for 2024 [17] - The defense market is anticipated to continue growing due to increased defense investments globally and opportunities with U.S. modernization programs [19] Company Strategy and Development Direction - The company plans to invest in new products and technologies across all end markets to drive growth [21] - A strategic partnership with SANY aims to enhance market share in the mining dump market in Africa, Asia, and South America [18] - The launch of Allison Ventures will focus on investing in startup and growth-stage companies to foster advancements in commercial-duty mobility [21] Management's Comments on Operating Environment and Future Outlook - Management expressed a favorable outlook for the North America On-Highway market, citing pent-up demand and upcoming emissions changes [7] - The company is prepared to support the industry amid strong demand for Class 8 vocational trucks [26] - Management acknowledged challenges in the Off-Highway market in North America due to capital discipline but remains optimistic about Outside North America [33] Other Important Information - The company repurchased over $100 million worth of shares in Q4 2023, totaling over $260 million for the year [9] - The company ended Q4 2023 with a net leverage ratio of 1.8 times and $555 million in cash [13] Q&A Session Summary Question: North America On-Highway market outlook - Management noted strong demand in the medium-duty segment and indicated that Class 8 vocational trucks remain relatively unsupplied, with expectations for continued strong demand into 2024 [25][26] Question: Volume and price mix expectations - Management reported a 540 basis point price increase year-over-year in 2023 and anticipates approximately 200 basis points of price increase in 2024 [29][30] Question: Off-Highway market growth expectations - Management highlighted that North America's Off-Highway market is largely energy-focused and expects limited demand increase, while Outside North America remains strong due to mining and construction activities [33][34] Question: Pricing power and negotiations - Management emphasized that over 60% of the North American On-Highway market will be available for price negotiations, allowing the company to leverage its value proposition [41][42] Question: Margin outlook for 2024 - Management indicated that margins are expected to be flat year-over-year, with potential upside driven by stronger topline revenue [44][46] Question: Impact of defense business growth on margins - Management clarified that while defense business has historically lower margins, the expansion into international sales is expected to mitigate negative impacts on overall EBITDA margins [49]

Q4 2023 Earnings Release February 13th, 2024 Dave Graziosi, Chairman & CEO 1 Fred Bohley, Senior Vice President, CFO & Treasurer ...

For the quarter ended December 2023, Allison Transmission (ALSN) reported revenue of $775 million, up 7.9% over the same period last year. EPS came in at $1.91, compared to $1.52 in the year-ago quarter.The reported revenue represents a surprise of +2.63% over the Zacks Consensus Estimate of $755.14 million. With the consensus EPS estimate being $1.42, the EPS surprise was +34.51%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Allison Transmission (ALSN) came out with quarterly earnings of $1.91 per share, beating the Zacks Consensus Estimate of $1.42 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 34.51%. A quarter ago, it was expected that this automatic transmission maker would post earnings of $1.72 per share when it actually produced earnings of $1.76, delivering a surprise of 2.33%.Over the last fo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35456 | --- | --- | --- | |--------------------------------------------------------------------|---------------------------------------------------------------- ...

The fourth-quarter earnings season for the Auto-Tires-Trucks sector is in full swing now. So far, seven S&P 500 sector components — Tesla, PACCAR, General Motors, Ford, Cummins, O’Reilly and BorgWarner — have reported quarterly numbers. While Tesla, Cummins and BorgWarner missed fourth-quarter earnings estimates, General Motors, Ford, PACCAR, O’Reilly surpassed the same.Per the Earnings Trend report dated Feb 7, the auto sector’s earnings for the fourth quarter are expected to decline 32.4% on a year-over-y ...