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's (AXL) Shares Rise 2% Since Q2 Earnings Beat
Read MoreHide Full Article
Shares of American Axle & Manufacturing Holdings (AXL - Free Report) have risen 2% since it reported second-quarter 2024 results. It reported adjusted earnings of 19 cents per share, which surpassed the Zacks Consensus Estimate of 10 cents. The company reported earnings per share of 12 cents in the year-ago quarter.
The company generated quarterly revenues of $1.63 billion, outpacing the Zacks Consensus Estimate of $1.56 billion. Revenues increased 3.9% on a year-over-year basis.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
In the reported quarter, the Driveline segment recorded sales of $1.12 billion, up 3.5% year over year. The figure also surpassed our estimate of $1.07 billion. The segment registered adjusted EBITDA of $151.8 million, which remained flat on a year-over-year basis and outpaced our estimate of $147 million.
The company’s Metal Forming business generated revenues of $653.1 million, which rose 3% from the year-ago quarter’s figure and beat our estimate of $599.8 million. The segment registered an adjusted EBITDA of $56.6 million, which rose 43% and outpaced our estimate of $33.9 million.
Financial Position
American Axle’s second-quarter SG&A expenses totaled $105.2 million, up from the year-ago quarter’s reported figure of $91.1 million.
Net cash provided by operating activities was $142.8 million, up from $132.8 million in the year-ago period.
Capital spending in the quarter was $46.6 million, up from $44.1 million reported in the year-ago period.
In the three months ended Jun 30, 2024, the company posted an adjusted free cash flow of $97.9 million compared with $95.8 million recorded in the year-ago period.
As of Jun 30, 2024, American Axle had cash and cash equivalents of $519.9 million, the same as of Dec 31, 2023.
Its net long-term debt was $2.69 billion, down from $2.75 billion as of Dec 31, 2023.
Updated 2024 Outlook
American Axle now envisions full-year 2024 revenues in the band of $6.10-$6.30 billion compared with the prior estimated range of $6.05-$6.35 billion.
Adjusted EBITDA is estimated in the band of $705-$755 million, up from the previous projection of $685-$750 million.
Adjusted free cash flow is expected in the range of $200-$240 million. The company reported an adjusted free cash flow of $219 million in 2023.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in 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's (AXL) Shares Rise 2% Since Q2 Earnings Beat
Shares of American Axle & Manufacturing Holdings (AXL - Free Report) have risen 2% since it reported second-quarter 2024 results. It reported adjusted earnings of 19 cents per share, which surpassed the Zacks Consensus Estimate of 10 cents. The company reported earnings per share of 12 cents in the year-ago quarter.
The company generated quarterly revenues of $1.63 billion, outpacing the Zacks Consensus Estimate of $1.56 billion. Revenues increased 3.9% on a year-over-year basis.
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 $1.12 billion, up 3.5% year over year. The figure also surpassed our estimate of $1.07 billion. The segment registered adjusted EBITDA of $151.8 million, which remained flat on a year-over-year basis and outpaced our estimate of $147 million.
The company’s Metal Forming business generated revenues of $653.1 million, which rose 3% from the year-ago quarter’s figure and beat our estimate of $599.8 million. The segment registered an adjusted EBITDA of $56.6 million, which rose 43% and outpaced our estimate of $33.9 million.
Financial Position
American Axle’s second-quarter SG&A expenses totaled $105.2 million, up from the year-ago quarter’s reported figure of $91.1 million.
Net cash provided by operating activities was $142.8 million, up from $132.8 million in the year-ago period.
Capital spending in the quarter was $46.6 million, up from $44.1 million reported in the year-ago period.
In the three months ended Jun 30, 2024, the company posted an adjusted free cash flow of $97.9 million compared with $95.8 million recorded in the year-ago period.
As of Jun 30, 2024, American Axle had cash and cash equivalents of $519.9 million, the same as of Dec 31, 2023.
Its net long-term debt was $2.69 billion, down from $2.75 billion as of Dec 31, 2023.
Updated 2024 Outlook
American Axle now envisions full-year 2024 revenues in the band of $6.10-$6.30 billion compared with the prior estimated range of $6.05-$6.35 billion.
Adjusted EBITDA is estimated in the band of $705-$755 million, up from the previous projection of $685-$750 million.
Adjusted free cash flow is expected in the range of $200-$240 million. The company reported an adjusted free cash flow of $219 million in 2023.
Zacks Rank & Key Picks
AXL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Blue Bird Corporation (BLBD - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in the past 30 days.