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Allison (ALSN) to Report Q1 Earnings: What's in the Cards?

Allison Transmission Holdings, Inc. ALSN is slated to release first-quarter 2024 results on Apr 25 after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s sales and earnings is pegged at $759.65 million and $1.88 per share, respectively.

The bottom-line projection implies a year-over-year rise of 1.62%. The Zacks Consensus Estimate for Allison’s first-quarter earnings per share has moved up by a penny in the past seven days. Its top-line projection implies a year-over-year rise of 2.52%.

ALSN surpassed earnings estimates in each of the trailing four quarters, the average surprise being 19.45%. This is depicted in the graph below:

Allison Transmission Holdings, Inc. Price and EPS Surprise

Allison Transmission Holdings, Inc. Price and EPS Surprise
Allison Transmission Holdings, Inc. Price and EPS Surprise

Allison Transmission Holdings, Inc. price-eps-surprise | Allison Transmission Holdings, Inc. Quote

Q4 Highlights

Allison reported adjusted earnings of $1.91 per share for fourth-quarter 2023, which beat the Zacks Consensus Estimate of $1.42 and rose 25.6% year over year. The company’s quarterly revenues of $775 million grew 8% from the year-ago period and outpaced the Zacks Consensus Estimate of $755 million.

Factors at Play

Allison’s eGen Power portfolio, comprising 100S, 100D, 130S, 85S and 130D e-axles, demonstrates its ability to adapt to the changing dynamics of the auto industry. The eGen Flex and eGen Force portfolios are expected to have bolstered ALSN’s performance in the to-be-reported quarter.

The company’s strong partnership with the U.S. Department of Defense, coupled with expanding international sales, is expected to have bolstered top-line growth in the first quarter. Upbeat projections for full-year 2024 revenues also spark optimism surrounding ALSN’s result in the to-be-reported quarter. For the full year, Allison envisions total sales in the range of $3.05-$3.15 billion, up from $3.03 billion generated in 2023.

On the flip side, electrified propulsion initiatives are expected to flare up the spending levels of the firm, thereby clipping cash flows. Allison is expected to incur high engineering and R&D expenses this year to fund product development across all end markets.

High costs of raw materials and electronic components across all industries, logistics challenges, including air and ocean freight and port delays, as well as labor cost inflation might have played spoilsport, limiting gross margins. Rising expenditure and macroeconomic scenarios are likely to have hurt the company’s performance in the first quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Allison for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Earnings ESP: Allison has an Earnings ESP of -1.33%. The Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ALSN currently sports a Zacks Rank #1.

Stocks With the Favorable Combination

Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.

Oshkosh Corporation OSK has an Earnings ESP of +0.11% and a Zacks Rank #2 at present. The company is set to release first-quarter 2024 results on Apr 25. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for OSK’s to-be-reported quarter’s earnings and revenues is pegged at $2.26 per share and $2.51 billion, respectively. Oshkosh surpassed earnings estimates in each of the trailing four quarters, the average surprise being 46.78%.

Visteon Corporation VC has an Earnings ESP of +5.10% and a Zacks Rank #3 at present. The company is slated to release first-quarter 2024 results on Apr 25.

The Zacks Consensus Estimate for VC’s to-be-reported quarter’s earnings and revenues is pegged at $1.76 per share and $990.08 million, respectively. Visteon surpassed earnings estimates in two of the trailing four quarters and missed twice, the average surprise being 134.25%.

PACCAR Inc PCAR has an Earnings ESP of +0.33% and sports a Zacks Rank #1 at present. The company is scheduled to release first-quarter 2024 results on Apr 30.

The Zacks Consensus Estimate for PCAR’s to-be-reported quarter’s earnings and revenues is pegged at $2.17 per share and $8.08 billion, respectively. PACCAR surpassed earnings estimates in each of the trailing four quarters, the average surprise being 17.07%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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