American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) posted adjusted earnings of 36 cents per share in the first quarter of 2019, beating the Zacks Consensus Estimate of 35 cents. In first-quarter 2018, adjusted earnings were 98 cents.
During the quarter under review, the company reported net income of $41.6 million compared with $89.4 million a year ago. Improved operational performance along with supporting customers on important program launches aided American Axle to witness an increase in earnings.
Sales increased to $1.72 billion, marking a plunge from the year-ago figure of $1.86 billion. The top line missed the Zacks Consensus Estimate of $1.74 billion.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
American Axle’s SG&A (Selling, General & Administrative) expenses were $90.7 million for first-quarter 2019 in comparison with $97.3 million in the prior-year quarter.
Gross profit decreased to $222 million in first-quarter 2019 from $316 million a year ago. Operating income declined to $94 million from $176 million.
Financial Position
American Axle had cash and cash equivalents of $252 million as of Mar 31, 2019, down from $476 million as of Dec 31, 2018. Net long-term debt was $3.7 billion as of Mar 31, 2019, similar to the figure recorded on Dec 31, 2018.
Cash outflow from operations for the first three months of 2019 was $80.2 million in comparison with the prioryear’s inflow of $67 million. At the end of the first three months of 2019, American Axle’s adjusted free cash outflow was $204 million compared with $63.5 million for the same period of last year.
Outlook
In second-quarter 2019, American Axle projects sales to be $1.75-$1.8 billion and adjusted EBITDA to be $270-$280 million
For 2019, the company expects sales of $7.3-$7.4 billion and adjusted EBIDTA of $1.2-$1.25 billion.
Zacks Rank & Stocks to Consider
American Axle currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are PACCAR, Inc. (PCAR - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ford Motor Company (F - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 3.9% upward over the past 30 days.
Allison Transmission has an expected current-year growth rate of 10%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 2.4% upward over the past 30 days.
Ford has an expected long-term growth rate of 8.1%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 14% upward over the past 30 days.
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American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) posted adjusted earnings of 36 cents per share in the first quarter of 2019, beating the Zacks Consensus Estimate of 35 cents. In first-quarter 2018, adjusted earnings were 98 cents.
During the quarter under review, the company reported net income of $41.6 million compared with $89.4 million a year ago. Improved operational performance along with supporting customers on important program launches aided American Axle to witness an increase in earnings.
Sales increased to $1.72 billion, marking a plunge from the year-ago figure of $1.86 billion. The top line missed the Zacks Consensus Estimate of $1.74 billion.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
American Axle’s SG&A (Selling, General & Administrative) expenses were $90.7 million for first-quarter 2019 in comparison with $97.3 million in the prior-year quarter.
Gross profit decreased to $222 million in first-quarter 2019 from $316 million a year ago. Operating income declined to $94 million from $176 million.
Financial Position
American Axle had cash and cash equivalents of $252 million as of Mar 31, 2019, down from $476 million as of Dec 31, 2018. Net long-term debt was $3.7 billion as of Mar 31, 2019, similar to the figure recorded on Dec 31, 2018.
Cash outflow from operations for the first three months of 2019 was $80.2 million in comparison with the prioryear’s inflow of $67 million. At the end of the first three months of 2019, American Axle’s adjusted free cash outflow was $204 million compared with $63.5 million for the same period of last year.
Outlook
In second-quarter 2019, American Axle projects sales to be $1.75-$1.8 billion and adjusted EBITDA to be $270-$280 million
For 2019, the company expects sales of $7.3-$7.4 billion and adjusted EBIDTA of $1.2-$1.25 billion.
Zacks Rank & Stocks to Consider
American Axle currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are PACCAR, Inc. (PCAR - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Ford Motor Company (F - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACCAR has an expected long-term growth rate of 8.4%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 3.9% upward over the past 30 days.
Allison Transmission has an expected current-year growth rate of 10%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 2.4% upward over the past 30 days.
Ford has an expected long-term growth rate of 8.1%. The company’s stock has seen the Zacks Consensus Estimate for earnings in 2019 being revised 14% upward over the past 30 days.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
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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