- Allison Transmission’s first-quarter earnings per share (EPS) were $2.23, surpassing the previous year’s $1.90 and exceeding the estimate of $2.08.
- Net sales for the quarter totaled $766 million, which is a 2.9% decrease compared to last year and below the estimate of $790.3 million.
- North America On-Highway net sales reached $435 million, showing a 3.6% increase from the previous year, exceeding the estimate of $429.4 million.
- Defense sales increased by 10% to $53 million, slightly below the estimate of $54.2 million.
- Outside North America On-Highway net sales were $112 million, down 2.6% year-over-year, still slightly beating the estimate of $111.1 million.
- Service Parts, Support Equipment & Other segments saw a net sales decline of 7.5% to $148 million, below the expected $160.2 million.
- Adjusted EBITDA was reported at $287 million, a minor 0.7% decline from last year, yet outperforming the estimate of $284.4 million.
- Allison Transmission maintains its year forecast, expecting capital expenditures between $165 million and $175 million, with a midpoint estimate at $170.6 million.
- Projected net sales for the year remain between $3.20 billion and $3.30 billion, aligning with estimates of $3.2 billion.
- Net income is forecasted to range from $735 million to $785 million, compared to the estimate of $729.7 million.
- Forecasted adjusted EBITDA is expected to be between $1.17 billion and $1.23 billion, above the estimate of $1.15 billion.
- Additional projections include net cash from operating activities anticipated to range from $800 million to $860 million, and adjusted free cash flow ranging from $635 million to $685 million.
- Analyst recommendations consist of 3 buys, 5 holds, and 2 sells.
Allison Transmission Holdings on Smartkarma
Analyst coverage of Allison Transmission Holdings on Smartkarma reveals insights from Baptista Research. In their report titled “Allison Transmission: The Electrification Bet That Could Reshape Its Future!” the analysts highlight the company’s strong performance in the fourth quarter and full-year of 2024. With record net sales of $3.2 billion, Allison Transmission’s focus on expanding market share and product diversification has yielded positive financial outcomes. Particularly, a notable 15% increase in net sales for the North American on highway market showcases strong demand for the company’s 3000 and 4000 Series products.
Another report by Baptista Research titled “Allison Transmission Inc.: An Insight Into Its Strategic Partnerships” delves into the company’s third-quarter 2024 results, revealing a mixed performance with both strengths and challenges. With a 12% year-over-year increase in net sales, reaching $824 million, Allison Transmission saw significant growth in the North American on highway end market. This surge was fueled by robust demand for Class 8 vocational vehicles and medium-duty trucks, supported by price increases on select products.
A look at Allison Transmission Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Allison Transmission Holdings shows a promising long-term outlook. With a strong score in Growth, it indicates the company is positioned well for future expansion and development. Additionally, its scores in Resilience and Momentum suggest a stable and consistent performance over time, with steady progress in its industry. While the scores for Value and Dividend are moderate, the higher scores in Growth, Resilience, and Momentum point towards a positive trajectory for the company.
Allison Transmission Holdings, Inc., known for manufacturing fully-automatic transmissions for various vehicles and hybrid-propulsion systems, appears well-positioned based on the provided Smart Scores. With a focus on growth and a resilient performance history, coupled with a stable momentum, the company seems poised for continued success in the long term. As it caters to a diverse range of applications, Allison Transmission Holdings is set to navigate the market effectively and capitalize on future opportunities in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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