Despite delivering a comprehensive beat and raising its 2021 guidance, American Axle & Manufacturing Holdings, Inc.’s (AXL - Free Report) shares have declined 4% since the company reported quarterly results on Jul 30. The company reported adjusted earnings of 29 cents per share for second-quarter 2021 against the Zacks Consensus Estimate of a loss of 3 cents. The bottom line also turned around from the year-ago loss of $1.79 a share incurred in the corresponding quarter of 2020. Higher-than-expected sales and EBITDA from the Metal Forming segment of the company led to this outperformance. The company generated quarterly revenues of $1,283.3 million, surpassing the Zacks Consensus Estimate of $1,141 million. Revenues also skyrocketed 149% on a year-over-year basis.
Segmental Performance
For the June-end quarter, the Driveline segment recorded sales of $935.4 million, up a whopping 148% year on year. The metric, however, missed the Zacks Consensus Estimate of $1,013 million. The segment registered an adjusted EBITDA of $151.3 million, falling short of the consensus mark of $158 million but reversing the year-ago loss of $25 million.
The company’s Metal Forming business generated revenues of $440.1 million during the second quarter, jumping from the year-ago figure of $168.2 million. The reported figure also topped the consensus mark of $431 million. Also, the segment witnessed an adjusted EBITDA of $71.3 million, exceeding the consensus mark of $60 million and turning around from the prior-year loss of $27.1 million.
Financial Position
American Axle’s second-quarter 2021 SG&A expenses totaled $86.2 million, up from $73.8 million incurred in the prior-year period.
For the three-month period ended Jun 30, 2021, the company posted adjusted free cash flow (FCF) of $136.1 million against negative FCF of $161.8 million recorded in the year-earlier period. Capital spending for the quarter came in at $41.2 million, up from the year-ago period’s $35 million.
As of Jun 30, 2021, American Axle had cash and cash equivalents of $587.7 million compared with $557 million on Dec 31, 2020. The company had net long-term debt of $3,118.5 million as of Jun 30, 2021, down from $3,441.3 million as of Dec 31, 2020.
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American Axle’s guidance for full-year 2021 revenues remains unchanged. Revenues are envisioned in the range of $5.3-$5.5 billion. Meanwhile, projections for adjusted EBITDA and FCF have been raised. The firm expects adjusted EBITDA and FCF in the band of $875-$925 million and $350-$425 million, up from the prior forecast of $850-$925 million and $300-$400 million, respectively.
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.
Some better-ranked stocks in the same sector include Meritor , LCI Industries (LCII - Free Report) and Luminar Technologies (LAZR - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present.
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Despite delivering a comprehensive beat and raising its 2021 guidance, American Axle & Manufacturing Holdings, Inc.’s (AXL - Free Report) shares have declined 4% since the company reported quarterly results on Jul 30. The company reported adjusted earnings of 29 cents per share for second-quarter 2021 against the Zacks Consensus Estimate of a loss of 3 cents. The bottom line also turned around from the year-ago loss of $1.79 a share incurred in the corresponding quarter of 2020. Higher-than-expected sales and EBITDA from the Metal Forming segment of the company led to this outperformance. The company generated quarterly revenues of $1,283.3 million, surpassing the Zacks Consensus Estimate of $1,141 million. Revenues also skyrocketed 149% on a year-over-year basis.
Segmental Performance
For the June-end quarter, the Driveline segment recorded sales of $935.4 million, up a whopping 148% year on year. The metric, however, missed the Zacks Consensus Estimate of $1,013 million. The segment registered an adjusted EBITDA of $151.3 million, falling short of the consensus mark of $158 million but reversing the year-ago loss of $25 million.
The company’s Metal Forming business generated revenues of $440.1 million during the second quarter, jumping from the year-ago figure of $168.2 million. The reported figure also topped the consensus mark of $431 million. Also, the segment witnessed an adjusted EBITDA of $71.3 million, exceeding the consensus mark of $60 million and turning around from the prior-year loss of $27.1 million.
Financial Position
American Axle’s second-quarter 2021 SG&A expenses totaled $86.2 million, up from $73.8 million incurred in the prior-year period.
For the three-month period ended Jun 30, 2021, the company posted adjusted free cash flow (FCF) of $136.1 million against negative FCF of $161.8 million recorded in the year-earlier period. Capital spending for the quarter came in at $41.2 million, up from the year-ago period’s $35 million.
As of Jun 30, 2021, American Axle had cash and cash equivalents of $587.7 million compared with $557 million on Dec 31, 2020. The company had net long-term debt of $3,118.5 million as of Jun 30, 2021, down from $3,441.3 million as of Dec 31, 2020.
View
American Axle’s guidance for full-year 2021 revenues remains unchanged. Revenues are envisioned in the range of $5.3-$5.5 billion. Meanwhile, projections for adjusted EBITDA and FCF have been raised. The firm expects adjusted EBITDA and FCF in the band of $875-$925 million and $350-$425 million, up from the prior forecast of $850-$925 million and $300-$400 million, respectively.
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.
Some better-ranked stocks in the same sector include Meritor , LCI Industries (LCII - Free Report) and Luminar Technologies (LAZR - Free Report) , each carrying a Zacks Rank of 2 (Buy), at present.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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