Allison Transmission (ALSN) To Report Earnings Tomorrow: Here Is What To Expect

Transmission provider Allison Transmission (NYSE:ALSN) will be reporting earnings this Monday afternoon. Here’s what to expect.

Allison Transmission beat analysts’ revenue expectations last quarter, reporting revenues of $1.41 billion, up 83.6% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.

Is Allison Transmission a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Allison Transmission’s revenue to grow 86.7% year on year, improving from its flat revenue in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Allison Transmission has missed Wall Street’s revenue estimates multiple 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. Wabash’s revenues decreased 9.1% year on year, beating analysts’ expectations by 3.6%, and Oshkosh reported revenues up 6.7%, topping estimates by 3.3%. Wabash traded down 6.8% following the results while Oshkosh was also down 7.8%.

Read our full analysis of Wabash’s results here and Oshkosh’s results here.

Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the heavy transportation equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Allison Transmission is down 1.9% during the same time and is heading into earnings with an average analyst price target of $137.30 (compared to the current share price of $114.48).

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