Allison Transmission (ALSN) Stock Stumbles After Q2 Results
NEW YORK (TheStreet) -- Shares of Allison Transmission (ALSN) - Get Report are retreating 7.2% to $28.22 on heavy trading volume early Thursday afternoon after the Indianapolis-based company reported lower-than-expected results for the 2016 second quarter and provided downbeat guidance.
After yesterday's market close, the maker of automatic transmissions said revenue fell 7% to $474.9 million from last year. Analysts had projected $475.5 million.
Allison Transmission posted earnings of 36 cents per diluted share. Adjusted earnings were 52 cents per share, according to Thomson Reuters. Analysts were expecting earnings of 64 cents per share.
In 2016, the company forecasts net sales declining 9.5% to 10.5%.
"We anticipate no meaningful relief from the global Off-Highway end market challenges and further weakening in North America On-Highway demand," CEO Lawrence Dewey said in a statement.
About 2.8 million of the company's shares changed hands so far today compared to its average volume of 1.53 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year.
The team believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ALSN