Allison Transmission Q4 EPS Tops Estimates by 8.97%, Revenue at $737M
Allison Transmission reported Q4 adjusted EPS of $1.70, beating the $1.56 estimate by 8.97%, while revenues reached $737 million, up 2.01% on estimates but down 7.4% year-over-year. North America On-Highway sales declined 13.8% to $361 million, with Outside North America On-Highway segment rising 5.7% to $131 million.
1. Earnings and Revenue Results
Allison Transmission delivered adjusted EPS of $1.70 for Q4, surpassing the $1.56 consensus by 8.97%. Revenue totaled $737 million, topping the $722 million estimate by 2.01%, though down 7.4% from $796 million in the year-ago quarter.
2. Key Segment Performance
Global Off-Highway sales came in at $12 million versus an $11.6 million estimate. North America On-Highway dropped 13.8% to $361 million, Service Parts & Support fell 5.3% to $160 million, Outside North America On-Highway rose 5.7% to $131 million, and Defense climbed 7.4% to $73 million.
3. Year-over-Year Comparisons
Adjusted EPS declined from $2.01 a year ago to $1.70, reflecting softer demand, while total quarterly revenue decreased 7.4% year-over-year. The company has beaten consensus EPS in three of the last four quarters but has only topped revenue estimates twice over the same period.
4. Market Reaction and Outlook
Shares have gained 8.5% over the past month versus a 1.8% rise in the S&P 500. Analysts project Q1 EPS of $2.38 on $1.35 billion revenue, and management commentary on the earnings call will be key for near-term estimate revisions.