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INDIANAPOLIS - Allison Transmission Holdings Inc. (NYSE:ALSN), a prominent designer and manufacturer of vehicle propulsion solutions, has declared a quarterly cash dividend of $0.25 per share for the third quarter of 2024. This dividend is payable on August 30, 2024, to shareholders who are on record as of August 19, 2024.
The company, with over a century of operation and a global footprint, including regional headquarters in the Netherlands, China, and Brazil, caters to a diverse market segment. Its products are integral to various applications ranging from on-highway trucks and buses to off-highway vehicles and defense equipment.
In other recent news, Allison Transmission has been in the spotlight following its impressive second-quarter 2024 results. The company reported a record-breaking revenue of $816 million, driven by strong demand across various sectors. Net income for the quarter stood at $187 million, with gross profit reaching $394 million.
Allison Transmission's robust performance led to Baird raising its price target for the company's shares from $87 to $90, while maintaining a neutral rating. The decision came after Allison surpassed expectations and increased its full-year guidance, which aligns with Baird's predictions.
The company's strong North American On-Highway sales, driven by significant Class 8 vocational vehicle demand, were a major contributor to its performance. The company's management expressed a positive outlook for the third quarter of 2024, suggesting continued momentum.
InvestingPro Insights
Allison Transmission Holdings Inc. (NYSE:ALSN) has demonstrated a consistent commitment to shareholder returns, as evidenced by the company's recent declaration of a quarterly cash dividend. This commitment is further underscored by the company's history of dividend growth; Allison Transmission has raised its dividend for 4 consecutive years and has maintained dividend payments for 13 consecutive years. This track record of returning value to shareholders is a positive indicator for investors seeking stable income streams.
InvestingPro Data highlights Allison Transmission's financial stability and growth potential. With a market capitalization of $7.22 billion and a robust gross profit margin of 48.17% for the last twelve months as of Q2 2024, the company showcases its ability to generate significant earnings relative to its revenues. Additionally, Allison Transmission's P/E ratio stands at 10.74, and when adjusted for the last twelve months as of Q2 2024, it is even more attractive at 10.25. This relatively low P/E ratio, in conjunction with a PEG ratio of 0.73, suggests that the company is trading at a reasonable price relative to near-term earnings growth expectations.
InvestingPro Tips also reveal that analysts have revised their earnings upwards for the upcoming period, which may indicate confidence in the company's future performance. Furthermore, with a strong return of 45.09% year-to-date as of late 2024, investors have enjoyed significant capital appreciation. For those interested in exploring additional insights, InvestingPro offers more tips, with a total of 13 additional InvestingPro Tips available for Allison Transmission, providing a comprehensive analysis of the company's investment potential.
As investors consider the latest dividend announcement, these insights from InvestingPro contribute to a broader understanding of Allison Transmission's financial health and future prospects. The company's ability to sustain dividend payments alongside its financial metrics and analyst optimism form a compelling narrative for both income-focused and growth-oriented investors alike.
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