Allison Transmission, a premier supplier of automatic transmissions for a variety of vehicles, unveiled impressive financial results for the fourth quarter of 2023. The company announced an earnings per share (EPS) of $1.91, surpassing the anticipated $1.43 by 48 cents. Additionally, its revenue saw a 7.9% increase from the previous year, reaching $775 million and exceeding forecasts of $744 million.
The CEO shared a positive outlook, highlighting the company's resilience in its key markets and projecting a record-breaking revenue year in 2024, fueled by strategic investments and market expansion efforts.
For 2024, Allison Transmission has set its revenue targets between $3.050 billion and $3.150 billion, above the expected $3.02 billion. Net income is forecasted to lie between $635 million and $685 million, with adjusted EBITDA anticipated to range from $1.070 billion to $1.130 billion. The company also predicts generating between $700 million to $760 million in cash from operations and plans capital expenditures of $125 million to $135 million.
Projected adjusted free cash flow is expected to be between $575 million and $625 million.
Following this announcement, Allison Transmission's shares saw a more than 12% increase. The stock has demonstrated a robust upward trend since the year's start, with this momentum expected to continue.
The company's standout financial performance is credited to strong demand in its main markets. Allison Transmission's dedication to strategic investments and market expansion has yielded significant returns, generating optimism among investors about its future potential.