Allison Transmission (ALSN) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

Wall Street analysts forecast that Allison Transmission (ALSN) will report quarterly earnings of $1.42 per share in its upcoming release, pointing to a year-over-year decline of 6.6%. It is anticipated that revenues will amount to $755.14 million, exhibiting an increase of 5.2% compared to the year-ago quarter.

The current level reflects a downward revision of 0.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Given this perspective, it's time to examine the average forecasts of specific Allison Transmission metrics that are routinely monitored and predicted by Wall Street analysts.

The combined assessment of analysts suggests that 'Net Sales- North America On- Highway' will likely reach $357.94 million. The estimate points to a change of +7.5% from the year-ago quarter.

Analysts forecast 'Net Sales- North America Off- Highway' to reach $18.77 million. The estimate indicates a change of -21.8% from the prior-year quarter.

The consensus estimate for 'Net Sales- Service Parts Support Equipment & Other' stands at $160.65 million. The estimate indicates a year-over-year change of +4.3%.

The collective assessment of analysts points to an estimated 'Net Sales- Defense' of $51.13 million. The estimate suggests a change of +8.8% year over year.

Analysts' assessment points toward 'Net Sales- Outside North America Off- Highway' reaching $29.10 million. The estimate suggests a change of +0.3% year over year.

Based on the collective assessment of analysts, 'Net Sales- Outside North America On- Highway' should arrive at $137.50 million. The estimate indicates a change of +5% from the prior-year quarter.

View all Key Company Metrics for Allison Transmission here>>>

Over the past month, shares of Allison Transmission have returned +6.8% versus the Zacks S&P 500 composite's +6.5% change. Currently, ALSN carries a Zacks Rank #2 (Buy), suggesting that it may outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.