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Unlocking American Axle (AXL) International Revenues: Trends, Surprises, and Prospects
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Have you evaluated the performance of American Axle & Manufacturing's (AXL - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of auto parts, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Our review of AXL's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter stood at $1.63 billion, increasing 3.9% year over year. Now, let's delve into AXL's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Trends in AXL's Revenue from International Markets
Of the total revenue, $149.1 million came from Asia during the last fiscal quarter, accounting for 9.1%. This represented a surprise of +21.48% as analysts had expected the region to contribute $122.74 million to the total revenue. In comparison, the region contributed $150.7 million, or 9.4%, and $129 million, or 8.2%, to total revenue in the previous and year-ago quarters, respectively.
Europe generated $233.6 million in revenues for the company in the last quarter, constituting 14.3% of the total. This represented a surprise of +17.48% compared to the $198.84 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $245.8 million (15.3%), and in the year-ago quarter, it contributed $230.6 million (14.7%) to the total revenue.
During the quarter, South America contributed $42.7 million in revenue, making up 2.6% of the total revenue. When compared to the consensus estimate of $35.85 million, this meant a surprise of +19.11%. Looking back, South America contributed $36.5 million, or 2.3%, in the previous quarter, and $51.4 million, or 3.3%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
The current fiscal quarter's total revenue for American Axle, as projected by Wall Street analysts, is expected to reach $1.59 billion, reflecting an increase of 2.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia is anticipated to contribute 9.3% or $147.43 million, Europe 12.8% or $203.69 million and South America 3% or $47.25 million.
Analysts expect the company to report a total annual revenue of $6.26 billion for the full year, marking an increase of 3% compared to last year. The expected revenue contributions from Asia, Europe and South America are projected to be 9.1% ($569.72 million), 13.5% ($846.32 million) and 2.5% ($154.24 million) of the total revenue, in that order.
Final Thoughts
American Axle's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
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Unlocking American Axle (AXL) International Revenues: Trends, Surprises, and Prospects
Have you evaluated the performance of American Axle & Manufacturing's (AXL - Free Report) international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this maker of auto parts, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
Our review of AXL's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.
The company's total revenue for the quarter stood at $1.63 billion, increasing 3.9% year over year. Now, let's delve into AXL's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Trends in AXL's Revenue from International Markets
Of the total revenue, $149.1 million came from Asia during the last fiscal quarter, accounting for 9.1%. This represented a surprise of +21.48% as analysts had expected the region to contribute $122.74 million to the total revenue. In comparison, the region contributed $150.7 million, or 9.4%, and $129 million, or 8.2%, to total revenue in the previous and year-ago quarters, respectively.
Europe generated $233.6 million in revenues for the company in the last quarter, constituting 14.3% of the total. This represented a surprise of +17.48% compared to the $198.84 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $245.8 million (15.3%), and in the year-ago quarter, it contributed $230.6 million (14.7%) to the total revenue.
During the quarter, South America contributed $42.7 million in revenue, making up 2.6% of the total revenue. When compared to the consensus estimate of $35.85 million, this meant a surprise of +19.11%. Looking back, South America contributed $36.5 million, or 2.3%, in the previous quarter, and $51.4 million, or 3.3%, in the same quarter of the previous year.
Projected Revenues in Foreign Markets
The current fiscal quarter's total revenue for American Axle, as projected by Wall Street analysts, is expected to reach $1.59 billion, reflecting an increase of 2.6% from the same quarter last year. The breakdown of this revenue by foreign region is as follows: Asia is anticipated to contribute 9.3% or $147.43 million, Europe 12.8% or $203.69 million and South America 3% or $47.25 million.Analysts expect the company to report a total annual revenue of $6.26 billion for the full year, marking an increase of 3% compared to last year. The expected revenue contributions from Asia, Europe and South America are projected to be 9.1% ($569.72 million), 13.5% ($846.32 million) and 2.5% ($154.24 million) of the total revenue, in that order.
Final Thoughts
American Axle's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
American Axle currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Reviewing American Axle's Recent Stock Price Trends