Why Allison Transmission Stock Dropped 5% After Earnings
Thursday's looking bleak for investors in truck transmission manufacturer Allison Transmission Holdings (NYSE: ALSN) stock, down 5.2% through 11:25 a.m. ET despite beating on earnings last night.
Heading into its third-quarter 2023 report, analysts had forecast that Allison would earn only $1.72 per share, but Allison actually earned $1.76 per share. That's the good news. The bad news is that Allison was also supposed to do $758.3 million in revenue last quarter, but it only did $736 million -- hence, an earnings beat paired with a sales miss.
And yet, overall, the news wasn't half bad. While Allison missed on sales, it still grew its sales 4% year over year -- and net income was up 14%, or even 21% per share after stock buybacks.
Source Fool.com
