Allison Transmission (ALSN) Misses Q4 EPS by 2c, Revenue Beats, Offers FY15 Guidance

Allison Transmission (NYSE: ALSN) reported Q4 EPS of $0.28, $0.02 worse than the analyst estimate of $0.30. Revenue for the quarter came in at $544 million versus the consensus estimate of $513.85 million.

2015 Guidance

Allison expects 2015 net sales to be in the range of flat to down 5 percent compared to 2014, an Adjusted EBITDA margin in the range of 34 to 35.5 percent, and an Adjusted Free Cash Flow in the range of $475 to $525 million, or $2.60 to $2.90 per diluted share. Capital expenditures are expected to be in the range of $60 to $70 million, which includes maintenance spending of approximately $60 million. Cash income taxes are expected to be in the range of $10 to $15 million.

Our 2015 net sales guidance reflects a cautious approach given the heightened level of uncertainty and the lack of near-term visibility and confidence in the global Off-Highway end markets. Allison's 2015 net sales outlook also assumes a continued recovery in the North America On-Highway end market, previously considered reductions in U.S. defense spending, continued weakness in the Outside North America On-Highway end market and lower demand for North America Hybrid-Propulsion Systems for Transit Bus due to engine emissions improvements and non-hybrid alternatives.

Although we are not providing specific first quarter 2015 guidance, Allison does expect first quarter net sales to be higher than the same period in 2014. The anticipated year-over-year increase in first quarter net sales is principally driven by higher demand in the North America On-Highway and Off-Highway end markets, partially offset by previously considered reductions in Defense net sales and lower demand in the North America Hybrid-Propulsion Systems for Transit Bus end market.

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

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