We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Axle (AXL) Beats on Q3 Earnings & Sales, Trims '22 View
Read MoreHide Full Article
American Axle & Manufacturing Holdings (AXL - Free Report) reported earnings of 27 cents per share in third-quarter 2022, beating the Zacks Consensus Estimate of 23 cents. Higher-than-anticipated EBITDA from the Driveline unit and higher-than-expected sales from the Metal Forming segment resulted in the outperformance. The bottom line shot up 80% from 15 cents a share earned a year ago. The company generated quarterly revenues of $1,535.2 million, surpassing the Zacks Consensus Estimate of $1,441 million. Revenues increased 26.5% on a year-over-year basis, led by favorable impacts of supply chain improvements, volume and mix and the Tekfor acquisition.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
In the reported quarter, the Driveline segment recorded sales of $1,061.1 million, rising 22% year over year but missing the Zacks Consensus Estimate of $1,083 million. The segment registered adjusted EBITDA of $146.4 million, up 14% and beating the consensus mark of $140 million.
The company’s Metal Forming business generated revenues of $591.2 million during the quarter, an increase of 40% from the year-ago figure. It crossed the consensus estimate of $416 million. The segment witnessed adjusted EBITDA of $52 million, falling 5.1% and lagging the consensus mark of $70 million.
Financial Position
American Axle’s third-quarter SG&A expenses totaled $85.7 million, down from $90.5 million incurred in the prior-year quarter.
In the three months ended Sep 30, 2022, the company posted an adjusted free cash flow of $45.8 million, falling from $69.1 million recorded in the year-earlier period. Capital spending in the quarter was $46.6 million, up from $33.2 million. Net cash provided by operating activities was $85.2 million, declining from $89.8 million in the year-ago period.
In the quarter, American Axle had cash and cash equivalents of $472.3 million compared with $530.2 million on Dec 31, 2021. Its net long-term debt was $2,974.1 million, down from $3,085.7 million as of Dec 31, 2021.
2022 Outlook Revised
American Axle updated its outlook for 2022. It now envisions revenues in the range of $5.75-$5.85 billion, down from the prior range of $5.75-$5.95 billion. Estimation for adjusted EBITDA is now in the range of $745-$765 million instead of $790-$830 million projected earlier. Adjusted FCF has been brought down to approximately $300 million from $300-$350 million, considering capital spending between 3% and 3.5% of sales.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.4% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.4% upward over the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Axle (AXL) Beats on Q3 Earnings & Sales, Trims '22 View
American Axle & Manufacturing Holdings (AXL - Free Report) reported earnings of 27 cents per share in third-quarter 2022, beating the Zacks Consensus Estimate of 23 cents. Higher-than-anticipated EBITDA from the Driveline unit and higher-than-expected sales from the Metal Forming segment resulted in the outperformance. The bottom line shot up 80% from 15 cents a share earned a year ago. The company generated quarterly revenues of $1,535.2 million, surpassing the Zacks Consensus Estimate of $1,441 million. Revenues increased 26.5% on a year-over-year basis, led by favorable impacts of supply chain improvements, volume and mix and the Tekfor acquisition.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
American Axle & Manufacturing Holdings, Inc. price-consensus-eps-surprise-chart | American Axle & Manufacturing Holdings, Inc. Quote
Segmental Performance
In the reported quarter, the Driveline segment recorded sales of $1,061.1 million, rising 22% year over year but missing the Zacks Consensus Estimate of $1,083 million. The segment registered adjusted EBITDA of $146.4 million, up 14% and beating the consensus mark of $140 million.
The company’s Metal Forming business generated revenues of $591.2 million during the quarter, an increase of 40% from the year-ago figure. It crossed the consensus estimate of $416 million. The segment witnessed adjusted EBITDA of $52 million, falling 5.1% and lagging the consensus mark of $70 million.
Financial Position
American Axle’s third-quarter SG&A expenses totaled $85.7 million, down from $90.5 million incurred in the prior-year quarter.
In the three months ended Sep 30, 2022, the company posted an adjusted free cash flow of $45.8 million, falling from $69.1 million recorded in the year-earlier period. Capital spending in the quarter was $46.6 million, up from $33.2 million. Net cash provided by operating activities was $85.2 million, declining from $89.8 million in the year-ago period.
In the quarter, American Axle had cash and cash equivalents of $472.3 million compared with $530.2 million on Dec 31, 2021. Its net long-term debt was $2,974.1 million, down from $3,085.7 million as of Dec 31, 2021.
2022 Outlook Revised
American Axle updated its outlook for 2022. It now envisions revenues in the range of $5.75-$5.85 billion, down from the prior range of $5.75-$5.95 billion. Estimation for adjusted EBITDA is now in the range of $745-$765 million instead of $790-$830 million projected earlier. Adjusted FCF has been brought down to approximately $300 million from $300-$350 million, considering capital spending between 3% and 3.5% of sales.
Zacks Rank & Key Picks
AXL currently has a Zacks Rank #4 (Sell).
Some better-ranked players in the auto space are Cummins Inc. (CMI - Free Report) , CarParts.com (PRTS - Free Report) and Genuine Parts Company (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Cummins has an expected earnings growth rate of 18.4% for the current year. The Zacks Consensus Estimate for CMI’s current-year earnings has been revised 0.4% upward in the past 30 days.
CarParts has an expected earnings growth rate of 45% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant over the past 30 days.
Genuine Parts has an expected earnings growth rate of 18.1% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 2.4% upward over the past 30 days.