Transmission provider Allison Transmission (NYSE:ALSN) will be announcing earnings results this Monday after the bell. Here’s what to look for.
Allison Transmission missed analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $766 million, down 2.9% year on year. It was a strong quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations and full-year revenue guidance beating analysts’ expectations.
Is Allison Transmission a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Allison Transmission’s revenue to decline 2% year on year to $800 million, a reversal from the 4.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.22 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Allison Transmission has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Allison Transmission’s peers in the heavy transportation equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Greenbrier delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 7.3%, and PACCAR reported a revenue decline of 15.7%, topping estimates by 2.6%. Greenbrier traded up 21.1% following the results while PACCAR was also up 8.9%.
Read our full analysis of Greenbrier’s results here and PACCAR’s results here.
Investors in the heavy transportation equipment segment have had steady hands going into earnings, with share prices flat over the last month. Allison Transmission is down 7.2% during the same time and is heading into earnings with an average analyst price target of $103.56 (compared to the current share price of $88.24).
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