Allison(US:ALSN) Zacks Investment Researchยท2024-05-02 14:05Core Viewpoint - Allison Transmission has been experiencing a decline in stock performance, with a return of -10.3% over the past month, compared to the Zacks S&P 500 composite's -4.2% and the Zacks Automotive - Original Equipment industry's -8.1% [1] Earnings Estimates - The expected earnings for Allison Transmission for the current quarter is $2.02 per share, reflecting a year-over-year increase of +5.2% [3] - The consensus earnings estimate for the current fiscal year is $7.56, indicating a year-over-year change of +2.2%, with a recent decrease of -1.1% over the last 30 days [3] - For the next fiscal year, the consensus estimate is $8.62, showing a change of +13.9% from the previous year, with a recent increase of +2.8% [3] Revenue Growth - The consensus sales estimate for the current quarter is $791.4 million, indicating a year-over-year change of +1.1% [6] - The sales estimates for the current and next fiscal years are $3.13 billion and $3.32 billion, reflecting changes of +3.1% and +6.2%, respectively [6] Recent Performance - In the last reported quarter, Allison Transmission achieved revenues of $789 million, a year-over-year increase of +6.5%, and an EPS of $1.90 compared to $1.85 a year ago [7] - The company exceeded the Zacks Consensus Estimate for revenues by +4.02% and for EPS by +1.06% [7] - Allison Transmission has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times [7] Valuation Metrics - The Zacks Value Style Score indicates that Allison Transmission is graded B, suggesting it is trading at a discount to its peers [10] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [8][9]