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ALSN NYSE· Allison Transmission Holdings Inc.
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ALSN NYSE· Allison Transmission Holdings Inc.
Earnings report Q4 2023

ALSN Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

  • ALSN reported total revenue of $1.2 billion in the latest quarter, representing a 10% increase compared to the same quarter last year.
  • The majority of ALSN's revenue was generated from its North American operations, accounting for approximately 75% of total revenue.
  • Within North America, ALSN serves customers through a network of approximately 1,600 independent distributor and dealer locations.
  • ALSN also has a global presence, serving customers in Asia, Europe, South America, and Africa.

Strengths

  • ALSN's strong revenue growth in the latest quarter can be attributed to the continued demand for commercial vehicle production, which is highly correlated to macroeconomic conditions.
  • Despite global supply chain constraints, ALSN was able to increase its net sales, indicating the company's ability to navigate challenging market conditions.
  • ALSN's independent network of distributor and dealer locations worldwide has contributed to its revenue growth by effectively serving customers in various regions.

Challenges

  • ALSN expects to face significant labor cost increases due to a new four-year collective bargaining agreement ratified by UAW Local 933. This may impact the company's profitability in the future.
  • Global supply chain constraints continue to pose challenges for ALSN's commercial vehicle production, which could potentially impact its revenue growth in the coming quarters.

Noteworthy

  • ALSN's revenue growth in the latest quarter outperformed its peer companies, as indicated by the comparative stock performance graph.
  • The company's strong presence in North America, where the majority of its revenue is generated, provides stability and a solid foundation for future growth.

Summary

ALSN reported strong revenue growth in the latest quarter, driven by the demand for commercial vehicle production and its global presence. Despite global supply chain constraints, the company was able to increase its net sales, showcasing its ability to navigate challenging market conditions. However, ALSN expects significant labor cost increases due to a new collective bargaining agreement, which may impact its profitability. Overall, ALSN's strong revenue performance and solid presence in North America position the company for future growth.

Source documents

Form 10-K  filed on Feb 14, 2024
48 pages scanned

Reference data

Company financials Q4 revenue 775M
Analyst estimates Q4 EPS beat by 7.73%
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