Core Viewpoint - Allison Transmission (ALSN) is anticipated to report a year-over-year increase in earnings despite a decline in revenues for the quarter ended June 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for Allison Transmission's quarterly earnings is $2.22 per share, reflecting a year-over-year increase of +4.2%, while revenues are projected to be $802.93 million, down 1.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.77% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Allison Transmission is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.75%, suggesting a bearish outlook from analysts [12]. - The stock currently holds a Zacks Rank of 3, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Allison Transmission was expected to post earnings of $1.97 per share but exceeded expectations with actual earnings of $2.23, resulting in a surprise of +13.20% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Conclusion - While the company does not appear to be a strong candidate for an earnings beat, it is essential for investors to consider other factors when making decisions regarding the stock ahead of its earnings release [17].

Group 1 - The article discusses the differences in operation and safety between various transmission modes (P, N, D) in vehicles, emphasizing the importance of understanding these modes for safe driving [3][5][10] - It highlights that P (Park) mode locks the output shaft mechanically, preventing vehicle movement when stationary, but can cause damage if engaged while the vehicle is in motion [5][7] - D (Drive) mode allows for easy driving but can lead to overheating of the transmission fluid if the vehicle is stationary for extended periods, with temperature rising approximately 1.2-1.5°C per minute [5][10] Group 2 - N (Neutral) mode disconnects the powertrain, reducing engine load and is recommended for long stops, although it may not prevent the vehicle from rolling on inclines [7][10] - For short stops (under 30 seconds), D mode with brake is preferred for quick response, but it requires continuous pressure on the brake pedal, which can lead to fatigue [8][10] - For longer stops (over 30 seconds), N mode with handbrake is advised to cut power transmission and reduce engine load, thus lowering fuel consumption and prolonging transmission fluid life [10]

Company Performance - Allison Transmission reported quarterly earnings of $2.23 per share, exceeding the Zacks Consensus Estimate of $1.97 per share, and up from $1.90 per share a year ago, representing an earnings surprise of 13.20% [1] - The company posted revenues of $766 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 1.18% and decreased from $789 million year-over-year [2] - Over the last four quarters, Allison Transmission has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.12 on revenues of $794.34 million, and for the current fiscal year, it is $8.29 on revenues of $3.15 billion [7] - The estimate revisions trend for Allison Transmission is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Allison Transmission belongs, is currently in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Allison Transmission's stock performance [5]