American Axle & Manufacturing Holdings, Inc.’s (AXL - Free Report) shares appreciated 7.3% after the company reported outstanding quarterly results on May 7. The Detroit-based global automotive parts supplier not just delivered a comprehensive beat but also posted higher year-over-year earnings and sales.
The company delivered adjusted earnings of 57 cents per share for first-quarter 2021, beating the Zacks Consensus Estimate of earnings of 25 cents. Higher-than-expected contribution from both major segments of the company led to this outperformance. Moreover, the reported figure comes in higher than the year-ago quarter’s earnings of 20 cents per share.
American Axle generated quarterly revenues of $1,425.1 million, surpassing the Zacks Consensus Estimate of $1,312.4 million. Revenues also climbed 6.1% from the year-ago figure of $1,343.5 million. Per the company, sales were unfavorably impacted by the semiconductor chip shortage to the tune of roughly $64 million in the reported quarter.
Segmental Performance
For the March-end quarter, the Driveline segment recorded sales of $1,026.1 million, up 8.5% year on year. The metric, however, missed the Zacks Consensus Estimate of $1,094 million. Nonetheless, the segment registered an adjusted EBITDA of $170.5 million, marginally beating the consensus mark of $169 million and higher than the $134.5 million witnessed in the prior-year quarter.
The company’s Metal Forming business generated revenues of $489.3 million during the first quarter, up from the year-ago figure of $482.1 million. The reported figure also topped the consensus mark of $446 million. Also, the segment witnessed an adjusted EBITDA of $92.4 million, significantly exceeding the consensus mark of $4.7 million as well as higher than the prior year’s income of $78.8 million.
Financial Position
American Axle’s first-quarter 2021 SG&A (selling, general & administrative) expenses totaled $90 million, slightly down from the $90.3 million incurred in the prior-year period.
For the three-month period ended Mar 31, 2021, the company posted adjusted free cash flow (FCF) of $174.1 million, as against the adjusted FCF of $83.3 million recorded in the year-earlier period. Capital spending for the quarter came in at $39.6 million, down from the year-ago period’s $69.2 million.
As of Mar 31, 2021, American Axle had cash and cash equivalents of $601.2 million compared with $682.7 million on Mar 31, 2020. The company had net long-term debt of $3,360.9 million as of Mar 31, 2021, down from $3,511.7 million as of Mar 31, 2020.
Outlook for 2021
American Axle’s guidance for full-year 2021 remains unchanged. The company projects 2021 revenues in the range of $5.3-$5.5 billion and adjusted EBITDA of $850-$925 million. The company expects adjusted free cash flow in the $300-$400 million band.
Zacks Rank & Stocks to Consider
American Axle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-ranked stocks in the same sector include BRP Inc. (DOOO - Free Report) , LCI Industries (LCII - Free Report) and Oshkosh Corporation (OSK - Free Report) , all of which sport a Zacks Rank of 1, at present.
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
American Axle & Manufacturing Holdings, Inc.’s (AXL - Free Report) shares appreciated 7.3% after the company reported outstanding quarterly results on May 7. The Detroit-based global automotive parts supplier not just delivered a comprehensive beat but also posted higher year-over-year earnings and sales.
The company delivered adjusted earnings of 57 cents per share for first-quarter 2021, beating the Zacks Consensus Estimate of earnings of 25 cents. Higher-than-expected contribution from both major segments of the company led to this outperformance. Moreover, the reported figure comes in higher than the year-ago quarter’s earnings of 20 cents per share.
American Axle generated quarterly revenues of $1,425.1 million, surpassing the Zacks Consensus Estimate of $1,312.4 million. Revenues also climbed 6.1% from the year-ago figure of $1,343.5 million. Per the company, sales were unfavorably impacted by the semiconductor chip shortage to the tune of roughly $64 million in the reported quarter.
Segmental Performance
For the March-end quarter, the Driveline segment recorded sales of $1,026.1 million, up 8.5% year on year. The metric, however, missed the Zacks Consensus Estimate of $1,094 million. Nonetheless, the segment registered an adjusted EBITDA of $170.5 million, marginally beating the consensus mark of $169 million and higher than the $134.5 million witnessed in the prior-year quarter.
The company’s Metal Forming business generated revenues of $489.3 million during the first quarter, up from the year-ago figure of $482.1 million. The reported figure also topped the consensus mark of $446 million. Also, the segment witnessed an adjusted EBITDA of $92.4 million, significantly exceeding the consensus mark of $4.7 million as well as higher than the prior year’s income of $78.8 million.
Financial Position
American Axle’s first-quarter 2021 SG&A (selling, general & administrative) expenses totaled $90 million, slightly down from the $90.3 million incurred in the prior-year period.
For the three-month period ended Mar 31, 2021, the company posted adjusted free cash flow (FCF) of $174.1 million, as against the adjusted FCF of $83.3 million recorded in the year-earlier period. Capital spending for the quarter came in at $39.6 million, down from the year-ago period’s $69.2 million.
As of Mar 31, 2021, American Axle had cash and cash equivalents of $601.2 million compared with $682.7 million on Mar 31, 2020. The company had net long-term debt of $3,360.9 million as of Mar 31, 2021, down from $3,511.7 million as of Mar 31, 2020.
Outlook for 2021
American Axle’s guidance for full-year 2021 remains unchanged. The company projects 2021 revenues in the range of $5.3-$5.5 billion and adjusted EBITDA of $850-$925 million. The company expects adjusted free cash flow in the $300-$400 million band.
Zacks Rank & Stocks to Consider
American Axle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Better-ranked stocks in the same sector include BRP Inc. (DOOO - Free Report) , LCI Industries (LCII - Free Report) and Oshkosh Corporation (OSK - Free Report) , all of which sport a Zacks Rank of 1, at present.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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