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LONDON, UK / ACCESSWIRE / December 04, 2017 / Active-Investors free earnings report on Allison Transmission Holdings, Inc. (NYSE: ALSN) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=ALSN. Allison Transmission reported its third quarter fiscal 2017 operating results on October 30, 2017. The largest global provider of commercial duty fully-automatic transmissions outperformed top- and bottom-line expectations and also raised its sales guidance for FY17. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for Johnson Controls International PLC (NYSE: JCI), which also belongs to the Consumer Goods sector as the Company Allison Transmission. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Allison Transmission Holdings most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Earnings Highlights and Summary
Allison Transmission reported net sales of $595 million for Q3 2017, a 37% increase from net sales of $434 million in Q3 2016, principally driven by higher demand in the North America On-Highway, Service Parts, Support Equipment & Other, and Global Off-Highway end-markets. The Company's reported numbers topped analysts' expectations of $526.4 million.
Allison Transmission's gross profit surged 48% to $302 million for Q3 2017 from $204 million fin Q3 2016. The Company's gross margin for the reported quarter was 50.8%, reflecting an increase of 370 basis points from a gross margin of 47.1% from the year-earlier corresponding quarter. The increase in gross profit on a y-o-y basis was principally driven by increased net sales and price increases on certain products.
For Q3 2017, Allison Transmission's net income was $111 million, or $0.75 per diluted share, compared to $45 million, or $0.27 per share, for Q3 2016. The increase was principally driven by increased gross profit, 2016 expense for previously recorded deferred financing costs as a result of the long-term debt refinancing. and favorable product warranty adjustments. The Company's earnings beat Wall Street's estimates of $0.48 per share.
Allison Transmission's adjusted EBITDA for Q3 2017 was $241 million, or 40.5% of net sales, compared to $151 million, or 34.7% of net sales, in Q3 2016.
Allison Transmission's Segment Results
During Q3 2017, the North America On-Highway end-market's net sales surged 26% to $282 million on a y-o-y basis driven by higher demand for Rugged Duty Series and Highway Series models. The Company's North America Electric Hybrid-Propulsion Systems for Transit Bus end market net sales soared 138% to $19 million for the reported quarter, attributed to the timing of certain transit property orders.
During Q3 2017, the North America Off-Highway end-market's net sales were up $16 million to $17 million on a y-o-y basis, driven by higher demand from hydraulic fracturing applications. The Company's Defense end-market's net sales for the reported quarter surged 40% to $35 million.
For Q3 2017, the Outside North America On-Highway end-market's net sales were up 14% to $89 million on a y-o-y basis, principally driven by higher demand in Asia and Europe. The Company's Outside North America Off-Highway end-market's net sales soared 600% to $14 million, attributed to improved demand in the mining and energy sectors.
The Service Parts, Support Equipment & Other end-market's net sales jumped 45% to $139 million on a y-o-y basis, driven by higher demand for North America Off-Highway service parts, global On-Highway service parts and global support equipment.
Cash Matters
Allison Transmission's net cash provided by operating activities was $215 million for Q3 2017 compared to $128 million for Q3 2016. The Company's adjusted free cash flow for the reported quarter was $195 million compared to $115 million for the prior year's same quarter.
During Q3 2017, Allison Transmission settled $239 million of share repurchases, paid a dividend of $0.15 per share and completed an offering of $400 million in senior notes due in 2027.
Outlook
Allison Transmission raised its FY17 net sales guidance from an increase in the range of 15% to 17% to an increase in the range of 21% to 22%. The Company's adjusted EBITDA margin is projected to be in the range of 37.75% to 38.75% and adjusted free cash flow to be in the range of $510 million to $530 million. Additionally, it is anticipated that capital expenditures would be in the band of $90 million to $95 million and cash income taxes in the range of $105 million to $115 million.
Stock Performance Snapshot
December 01, 2017 - At Friday's closing bell, Allison Transmission Holdings' stock was slightly down 0.17%, ending the trading session at $40.97.
Volume traded for the day: 1.54 million shares.
Stock performance in the last three-month – up 16.92%; previous six-month period – up 7.14%; past twelve-month period – up 21.50%; and year-to-date – up 21.61%
After last Friday's close, Allison Transmission Holdings' market cap was at $5.98 billion.
Price to Earnings (P/E) ratio was at 18.03.
The stock has a dividend yield of 1.46%.
The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.
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