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Allison Transmission Holdings Declares Dividend of $0.15 per Share

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Price movement

Allison Transmission Holdings (ALSN) has a market cap of $4.7 billion. It rose 0.28% to close at $28.50 per share on November 4, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.8%, -0.25%, and 12.0%, respectively, on the same day.

ALSN is trading 0.84% above its 20-day moving average, 1.8% above its 50-day moving average, and 5.7% above its 200-day moving average.

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Related ETF and peers

The Guggenheim Mid-Cap Core ETF (CZA) invests 0.59% of its holdings in Allison Transmission. The ETF tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 midcap stocks that seeks to outperform pure market-cap indexes. The YTD price movement of CZA was 7.4% on November 4.

The market caps of Allison Transmission’s competitors are as follows:

  • Caterpillar (CAT) — $48.0 billion
  • Cummins (CMI) — $21.0 billion
  • Thor Industries (THO) — $4.0 billion

ALSN declared dividend

Allison Transmission Holdings has declared a quarterly cash dividend of $0.15 per share on its common stock. The dividend will be paid on November 30, 2016, to shareholders of record at the close of business on November 14, 2016.

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Performance of Allison Transmission in 3Q16

Allison Transmission (ALSN) reported 3Q16 net sales of $434.3 million, a fall of 11.9% compared to net sales of $493.0 million in 3Q15. The company’s gross profit margin fell 80 basis points and its operating margin rose 120 basis points in 3Q16 compared to 3Q15.

Its net income fell to $44.6 million in 3Q16 compared to $46.5 million in 3Q15. It reported EPS (earnings per share) of $0.27 in 3Q16 and 3Q15. It reported adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] of $150.5 million in 3Q16, a fall of 13.6% compared to 3Q15.

ALSN’s cash and cash equivalents fell 34.5%, and its inventories rose 10.2% in 3Q16 compared to 4Q15. Its current ratio fell to 1.6x, and its debt-to-equity ratio rose to 2.8x in 3Q16 compared to 2.0x and 2.7x, respectively, in 4Q15. It reported adjusted free cash flow of $115.5 million in 3Q16, a fall of 21.8% compared to 3Q15.

Projections

Allison Transmission (ALSN) has made the following projections for fiscal 2016:

  • net sales decrease: 8.5%–9.5%
  • adjusted EBITDA margin:34.0%–35.0%
  • adjusted free cash flow: $435 million–$455 million
  • capital expenditures: $70 million–$75 million
  • cash income tax: $10 million–$15 million

Next, we’ll look at WestRock Company (WRK).

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