Allison Transmission (ALSN) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Allison Transmission, with a focus on how actual results compare to estimates, which could significantly influence stock price movements [1][2]. Earnings Expectations - Allison Transmission is expected to report quarterly earnings of $1.56 per share, reflecting a year-over-year decrease of 22.4% [3]. - Revenues are projected to be $722.46 million, down 9.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 26.78% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Allison Transmission is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +7.69% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a likely earnings beat, especially when combined with a Zacks Rank of 1 [10]. - Allison Transmission currently holds a Zacks Rank of 1, indicating a strong likelihood of exceeding the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Allison Transmission had an expected EPS of $1.95 but reported $1.63, resulting in a surprise of -16.41% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Comparison - Patrick Industries, another player in the automotive industry, is expected to report earnings of $0.74 per share, showing a year-over-year increase of 42.3% [18]. - Despite a positive Earnings ESP of +2.70%, Patrick Industries has a Zacks Rank of 4, making it challenging to predict an earnings beat [20].