Actionable news
All posts from Actionable news

Allison Transmission Delivers 'Very Solid' Q1 Results; Outlook Reaffirmed

Trade with confidence. Are you a professional trader? Be the first to get the alert with Benzinga Pro's real-time newsfeed and audio squawk and never miss an opportunity again.
Don't miss the chance to try it FREE today.

Allison Transmission Holdings Inc ALSN 1.38% shares were quiet in post-market action Monday afternoon. Investors in the name responded to first-quarter earnings and affirmed fiscal year guidance which remained above Wall Street estimates.

The company reported quarterly non-GAAP net income of $109 million, down about 27 percent from the same quarter last year. Adjusted earnings per share totaled $0.33.

Sales came in at $462 million, better than the $445 million analysts on Wall Street had been expecting. Sales were down about 8 percent on a year-over-year basis.

Allison's Chair and CEO, Lawrence Dewey, commented on the sales performance: "The year-over-year reductions in the global Off-Highway and Service Parts, Support Equipment & Other end markets net sales are consistent with the previously contemplated impact of low energy and commodity prices."

Affirmed Outlook

"We anticipate no meaningful relief from the global Off-Highway end market challenges and are affirming our full year net sales guidance of a decrease in the range of 6.5 to 9.5 percent," Dewey said.

The full year outlook represents total sales of about $1.83 billion to $2.15 billion, above analysts' $1.82 billion sales consensus estimate.

One Analyst's Take

Kristine Kubacki at Avondale Partners offered an initial take at Allison's first-quarter results and outlook.

"Allison delivered a very solid quarter in a tough global environment, particularly for commodity tied off-highway markets. We think the quarter and the reaffirmation of guidance are largely ‘good enough' for investor expectations to move the stock higher."

Kubacki and Avondale reiterated a Market Outperform rating and $30 price target on shares of Allison Transmission.

Allison shares were last indicated at $27.95,

Mar 2016RBC CapitalInitiates Coverage onOutperform
Mar 2016Bank of AmericaUpgradesNeutralBuy
Feb 2016Deutsche BankMaintainsHold

© 2016 Benzinga does not provide investment advice. All rights reserved.