Allison Transmission (ALSN) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates that Allison Transmission (ALSN) will report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on February 11, 2025, with a consensus EPS estimate of $1.93, reflecting a +1.1% change year-over-year. Revenues are projected to be $791.22 million, up 2.1% from the previous year [3][4]. Estimate Revisions - The consensus EPS estimate has been revised 1.21% higher in the last 30 days, indicating a positive reassessment by analysts [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP for Allison Transmission is +9.33%, suggesting a strong likelihood of beating the consensus EPS estimate, especially given its Zacks Rank of 1 (Strong Buy) [11][10]. Historical Performance - In the last reported quarter, Allison Transmission exceeded the expected EPS of $2.01 by delivering $2.27, resulting in a surprise of +12.94%. The company has beaten consensus EPS estimates in all of the last four quarters [12][13]. Industry Comparison - In the Zacks Automotive - Original Equipment industry, Lear (LEA) is expected to report a decline in earnings, with a consensus EPS estimate of $2.59, down 14.5% year-over-year, and revenues expected to decrease by 5.6% to $5.51 billion [17][18].