Shares of Allison Transmission (NYSE: ALSN) soared 13.9% on Wednesday after the commercial-duty transmission manufacturer announced strong fourth-quarter results.

Allison Transmission's fourth-quarter 2023 revenue grew 7.9% year over year to $775 million, translating to a 26% increase in net income to $170 million, or $1.91 per share. Wall Street analysts, on average, were only expecting quarterly earnings of $1.43 per share on revenue of $745 million.

Company Chairman and CEO David Graziosi noted it was a record year led by "strong demand in our largest end markets." Indeed, Allison Transmission saw net sales climb 13% to $1.529 billion in its North America On-Highway end market and an 18% increase to $696 million from service parts, support equipment, and other related products sales. The company also drove a 14% increase to $166 million in net sales from its Defense segment.

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Source Fool.com