Allison Transmission raises forecast after solid quarterly report

Allison Transmission Holdings Inc. raised its full-year sales projections after reporting better-than-expected revenue and earnings in the third quarter.

The Indianapolis-based automatic transmission maker on Monday reported a quarterly profit of $111 million, or 75 cents per share, up from $45 million, or 27 cents per share, in the same period of 2016.

The profit topped the average prediction of 48 cents per share by nine analysts surveyed by Zacks Investment Research.

Allison posted revenue of $595 million in the period, up 37 percent from $434 million in the year-ago quarter. Analysts surveyed by Zacks expected revenue of $526.4 million

Sales in the North America On-Highway business unit rose 26 percent, to $282 million. And sales were up 45 percent in the "service parts, support equipment & other" category, to $139 million.

The manufacturer raised its full-year 2017 net sales guidance from an increase in the range of 15 percent to 17 percent to an increase in the range of 21 percent to 22 percent.

Allison shares were up 2.6 percent Wednesday morning, to $43.62 each, and have risen 53 percent in the past year.

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