Allison Transmission (ALSN) Beats Q4 Earnings and Revenue Estimates

Core Insights - Allison Transmission (ALSN) reported quarterly earnings of $2.01 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, and showing an increase from $1.91 per share a year ago, resulting in an earnings surprise of 4.15% [1] - The company achieved revenues of $796 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.60% and up from $775 million year-over-year [2] - The stock has gained approximately 5.6% since the beginning of the year, outperforming the S&P 500's gain of 3.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $843.14 million, and for the current fiscal year, it is $9.22 on revenues of $3.43 billion [7] - The estimate revisions trend for Allison Transmission is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Allison Transmission belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Magna (MGA), another company in the same industry, is expected to report quarterly earnings of $1.46 per share, reflecting a year-over-year increase of 9.8%, although its consensus EPS estimate has been revised 1.5% lower recently [9]