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

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

Transmission provider Allison Transmission (NYSE:ALSN) will be announcing earnings results tomorrow after market hours. Here's what to look for.

Allison Transmission beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $789 million, up 6.5% year on year. It was a strong quarter for the company, with a decent beat of analysts' earnings estimates but a miss of analysts' North America On-Highway revenue estimates.

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 grow 2.1% year on year to $799.4 million, slowing from the 17.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.03 per share.

Allison Transmission Total Revenue

The majority of analysts covering the company have 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 twice over the last two years.

Looking at Allison Transmission's peers in the heavy machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PACCAR's revenues decreased 2.1% year on year, meeting analysts' expectations, and Greenbrier reported a revenue decline of 21%, falling short of estimates by 10.9%. Greenbrier traded down 6.1% following the results.

Read our full analysis of PACCAR's results here and Greenbrier's results here.

There has been positive sentiment among investors in the heavy machinery segment, with share prices up 8.3% on average over the last month. Allison Transmission is up 13% during the same time and is heading into earnings with an average analyst price target of $83.5 (compared to the current share price of $85.1).

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