ALSN - Allison Transmission: This High-Quality Business Is Still A Buy After Earnings
2024-02-18 15:17:29 ET
Summary
- Allison Transmission Holdings designs and manufactures vehicle propulsion solutions, specializing in durable automatic transmissions for commercial vehicles. The company has a strong reputation for quality, reliability, and fuel efficiency.
- They are a high-quality business with sector leading profitability metrics, a healthy balance sheet, growth potential all while trading at a low valuation.
- They have repurchased half their shares while their valuation has been depressed do to unknown reasons, most likely fear of electric vehicle movement or competition.
Is ALSN still a Buy?
Allison Transmission Inc, (ALSN) reported earnings last week on 2/13/2024 and blew expectations out of the water. EPS Normalized Actual came in at $2.04, beating expectations by $0.54. EPS GAAP Actual came in at $1.91, beating by $0.46. ALSN also celebrated a Revenue surprise of $30.42M for a Revenue Actual of $775.00M. As a result, ALSN shares traded nearly 20% post market hours and settled back down to around $71 today. The question becomes is it too late to jump on this ship?...
Allison Transmission: This High-Quality Business Is Still A Buy After Earnings