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Allison (ALSN) Receives US Army's M10 Booker Contract
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Allison Transmission Holdings, Inc. (ALSN - Free Report) has been awarded a contract for the second phase of the U.S. Army’s Low-Rate Initial Production. The contract is worth nearly $13 million and is for producing the M10 Booker Combat Vehicle, formerly known as Mobile Protected Firepower.
The M10 Booker, a modernization initiative by the U.S. Army, is designed to strengthen the combat power of the Army’s Infantry Brigade Combat Teams. The vehicle has reached the second phase of low-rate production with Allison’s 3040 MX cross-drive transmission.
Dana Pittard, vice president of Allison Transmission Defense Programs, said that the business model, which supports low-volume programs, especially in the company’s Off-Highway and Defense end markets, gives it an edge over its competitors. The company has a knack for providing its customers with propulsion solutions required for armored combat vehicles.
The U.S. Army is likely to buy 500 MPF vehicles by 2035, contributing approximately $250 million in revenues for Allison’s Defense end market.
Allison’s innovation bodes well for both current and future battlefield requirements. The 3040 MX transmission is one of the many cross-drive propulsion solutions from Allison. The 3040 MX transmission fills the medium-weight gap in the company’s cross-drive product portfolio.
Variants of the X200 Series, X1100 Series, 2000 SP Series, 3000 SP Series, 4000 SP Series and the new eGen Force, are additional defense product offerings by Allison that are applied throughout the organization.
Allison anticipates a surge in international demand, especially for the X1100 transmission, linked to the delivery of over 400 Abrams tanks abroad in the next three years. Also, the company’s net sales are now estimated in the band of $2,960-$3,040 million, up from the previously guided range of $2,900-$3,000 million. The raised guidance for 2023 sparks optimism.
Some other top-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) and Gentex Corporation (GNTX - Free Report) , each sporting the same rank as ALSN.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by 23 cents in the past 30 days. The EPS estimate for 2024 has moved up by 6 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year increases of 17.3% and 29.4%, respectively. The EPS estimate for 2023 and 2024 has moved up by 2 cents and 3 cents, respectively, in the past 30 days.
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Allison (ALSN) Receives US Army's M10 Booker Contract
Allison Transmission Holdings, Inc. (ALSN - Free Report) has been awarded a contract for the second phase of the U.S. Army’s Low-Rate Initial Production. The contract is worth nearly $13 million and is for producing the M10 Booker Combat Vehicle, formerly known as Mobile Protected Firepower.
The M10 Booker, a modernization initiative by the U.S. Army, is designed to strengthen the combat power of the Army’s Infantry Brigade Combat Teams. The vehicle has reached the second phase of low-rate production with Allison’s 3040 MX cross-drive transmission.
Dana Pittard, vice president of Allison Transmission Defense Programs, said that the business model, which supports low-volume programs, especially in the company’s Off-Highway and Defense end markets, gives it an edge over its competitors. The company has a knack for providing its customers with propulsion solutions required for armored combat vehicles.
The U.S. Army is likely to buy 500 MPF vehicles by 2035, contributing approximately $250 million in revenues for Allison’s Defense end market.
Allison’s innovation bodes well for both current and future battlefield requirements. The 3040 MX transmission is one of the many cross-drive propulsion solutions from Allison. The 3040 MX transmission fills the medium-weight gap in the company’s cross-drive product portfolio.
Variants of the X200 Series, X1100 Series, 2000 SP Series, 3000 SP Series, 4000 SP Series and the new eGen Force, are additional defense product offerings by Allison that are applied throughout the organization.
Allison anticipates a surge in international demand, especially for the X1100 transmission, linked to the delivery of over 400 Abrams tanks abroad in the next three years. Also, the company’s net sales are now estimated in the band of $2,960-$3,040 million, up from the previously guided range of $2,900-$3,000 million. The raised guidance for 2023 sparks optimism.
Zacks Rank & Key Picks
ALSN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked players in the auto space include Oshkosh Corporation (OSK - Free Report) and Gentex Corporation (GNTX - Free Report) , each sporting the same rank as ALSN.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 15% and 126.9%, respectively. The EPS estimate for 2023 has moved north by 23 cents in the past 30 days. The EPS estimate for 2024 has moved up by 6 cents in the past seven days.
The Zacks Consensus Estimate for GNTX’s 2023 sales and earnings indicates year-over-year increases of 17.3% and 29.4%, respectively. The EPS estimate for 2023 and 2024 has moved up by 2 cents and 3 cents, respectively, in the past 30 days.