Allison Transmission (ALSN) Q4 Revenue Tops Views

Allison Transmission (NYSE: ALSN) reported Q4 EPS of $1.51, $0.89 better than the analyst estimate of $0.62. Revenue for the quarter came in at $588 million versus the consensus estimate of $575.41 million.

Allison expects 2018 net sales to be in the range of up 3 to 7 percent compared to 2017, an Adjusted EBITDA margin in the range of 37.5 to 39.5 percent and an Adjusted Free Cash Flow in the range of $550 to $600 million. Capital expenditures are expected to be in the range of $85 to $95 million and cash income taxes are expected to be in the range of $70 to $80 million.

Our 2018 net sales guidance anticipates continued strength in the North American On-Highway end market. Allison's 2018 net sales outlook also assumes increased demand in the Outside North America On-Highway, Defense and North America Off-Highway end markets and price increases on certain products partially offset by decreased demand in the Service Parts, Support Equipment & Other end market.

Although we are not providing specific first quarter 2018 guidance, Allison does expect first quarter net sales to be up from the same period in 2017 principally driven by increased demand expected in the North America On-Highway and North America Off-Highway end markets.

For earnings history and earnings-related data on Allison Transmission (ALSN) click here.

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