Allison Transmission Holdings Inc. on Monday topped Wall Street expectations with its quarterly earnings report.
The Indianapolis-based manufacturer reported third-quarter profit of $167 million, or $1.27 per share, a 50 percent increase over the $111 million profit it reported in the same quarter of 2017. The results topped the average prediction of $1.09 per share from six analysts surveyed by Zacks Investment Research.
Allison revenue rose 16 percent from a year ago, to $692 million, topping analyst expectations of $652.3 million.
The results prompted Allison to raise its annual guidance for sales and profit.
The company anticipates net sales to increase by 18 percent to 19 percent in 2018 from the $2.3 billion recorded in 2017. The prior expectation was a rise in the range of 15 percent to 18 percent.
It expects 2018 profit in the range of $600 to $620 million, compared with a range of $570 to $600 million stated earlier.
Allison said sales increases were principally driven by higher demand in the Global On-Highway, Outside North America Off-Highway and Service Parts, Support Equipment & Other end markets.
Share in Allison were up 3.7 percent Tuesday morning, to $45.55 each.