Allison Transmission tops expectations with quarterly report

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.

Please enable JavaScript to view this content.

Editor's note: IBJ is now using a new comment system. Your Disqus account will no longer work on the IBJ site. Instead, you can leave a comment on stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Past comments are not currently showing up on stories, but they will be added in the coming weeks. Please note our updated comment policy that will govern how comments are moderated.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets in {{ count_down }} days.