Countdown to Allison Transmission (ALSN) Q4 Earnings: Wall Street Forecasts for Key Metrics

The upcoming report from Allison Transmission (ALSN) is expected to reveal quarterly earnings of $1.56 per share, indicating a decline of 22.4% compared to the year-ago period. Analysts forecast revenues of $722.46 million, representing a decline of 9.2% year over year.

The consensus EPS estimate for the quarter has been revised 29.4% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Allison Transmission metrics that are commonly monitored and projected by Wall Street analysts.

Analysts forecast 'Net Sales by End Market- North America On-Highway' to reach $335.37 million. The estimate indicates a change of -20% from the prior-year quarter.

The combined assessment of analysts suggests that 'Net Sales by End Market- Service Parts, Support Equipment & Other' will likely reach $167.14 million. The estimate indicates a change of -1.1% from the prior-year quarter.

Analysts predict that the 'Net Sales by End Market- Outside North America On-Highway' will reach $125.38 million. The estimate suggests a change of +1.1% year over year.

Analysts' assessment points toward 'Net Sales by End Market- Defense' reaching $85.50 million. The estimate points to a change of +25.7% from the year-ago quarter.

Over the past month, Allison Transmission shares have recorded returns of +7.4% versus the Zacks S&P 500 composite's -1.3% change. Based on its Zacks Rank #2 (Buy), ALSN will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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This article originally published on Zacks Investment Research (zacks.com).

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