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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAllison Transmission Holdings Inc. topped Wall Street expectations in the second quarter with record revenue and an 83 percent increase in profit.
The Indianapolis-based manufacturer on Monday reported revenue of $711 million in the period, up 23 percent from the same quarter of 2017. The revenue topped the average estimate of $652.4 million by six analysts surveyed by Zacks Investment Research.
Allison turned in a profit of $174 million, or $1.29 per share, compared with $95 million, or 63 cents per share, a year ago. Analysts had predicted earnings of $1 per share.
Sales rose 9 percent, to $343 million, in the company’s largest end market, North America On-Highway.
The North America Off-Highway market saw 520 percent growth, to $31 million, and the Service Parts market realized growth of 24 percent, to $169 million.
Big growth also was seen in the Outside North America Off-Highway and Defense segments.
“I am very pleased to report that Allison achieved record net sales in the second quarter of 2018, driven by increased demand across all of our end markets, and the execution of growth initiatives throughout our business,” CEO David Graziosi said in written comments.
The company raised full-year revenue guidance from an increase in the range of 10 percent to 14 percent to an increase in the range of 15 percent to 18 percent.
Allison shares closed at $41.82 each, up 11 percent over the past year.
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