Allison Transmission (ALSN) Misses Q2 EPS by 4c, Offers Guidance

Allison Transmission (NYSE: ALSN) reported Q2 EPS of $0.30, $0.04 worse than the analyst estimate of $0.34. Revenue for the quarter came in at $511 million versus the consensus estimate of $505.72 million.

Full Year 2015 Guidance Update

Our updated full year 2015 guidance includes a year-over-year net sales decrease in the range of 6 to 8 percent, an Adjusted EBITDA margin in the range of 34.75 to 35.75 percent and an Adjusted Free Cash Flow in the range of $470 to $500 million. Allison's updated net sales guidance reflects the elevated level of uncertainty and a dearth of near-term visibility in the global Off-Highway end markets. We are affirming the remaining guidance released to the market on April 27: capital expenditures in the range of $60 to $70 million and cash income taxes in the range of $10 to $15 million.

Although we are not providing specific third quarter 2015 guidance, Allison does expect third quarter net sales to be lower than the same period in 2014. The anticipated year-over-year decrease in third quarter net sales is expected to occur due to higher demand in the North America On-Highway end market being more than offset by lower demand in other end markets.

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

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