American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) posted adjusted earnings of 55 cents per share in the second quarter of 2019, missing the Zacks Consensus Estimate of 59 cents. In second-quarter 2018, adjusted earnings were $1.23.
In the quarter under review, the company reported net income of $52.7 million compared with $151.3 million a year ago.
Sales declined to $1.70 billion from the year-ago figure of $1.91 billion. The top line missed the Zacks Consensus Estimate of $1.8 billion.
American Axle’s SG&A (selling, general & administrative) expenses were $91.3 million for second-quarter 2019 in comparison with $95 million in the prior-year quarter.
Gross profit moved down to $248.3 million in second-quarter 2019 from $331.4 million a year ago. Operating income declined to $119.9 million from $190.3 million.
Financial Position
American Axle had cash and cash equivalents of $248.8 million as of Jun 30, 2019, down from $476 million as of Dec 31, 2018. Net long-term debt was $3.7 billion as of Jun 30, 2019, similar to the figure recorded on Dec 31, 2018.
For the three months ending Jun 30, 2019, the company’s adjusted free cash outflow was $119.3 million compared with $100.3 million for the same period of last year.
Outlook
For 2019, the company expects sales of $6.9-$7 billion, down from the previously mentioned $7.3-$7.4 billion. Also, its adjusted EBIDTA is now projected to be $1.05-$1.10 billion, down from the previous guidance of $1.2-$1.25 billion.
Zacks Rank & Stocks to Consider
Currently, American Axle has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Copart, Inc. (CPRT - Free Report) , CarMax, Inc. (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) . While Copart currently sports a Zacks Rank #1 (Strong Buy), CarMax and Gentex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 30.1%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 14%.
Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 15.5%.
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American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) posted adjusted earnings of 55 cents per share in the second quarter of 2019, missing the Zacks Consensus Estimate of 59 cents. In second-quarter 2018, adjusted earnings were $1.23.
In the quarter under review, the company reported net income of $52.7 million compared with $151.3 million a year ago.
Sales declined to $1.70 billion from the year-ago figure of $1.91 billion. The top line missed the Zacks Consensus Estimate of $1.8 billion.
American Axle’s SG&A (selling, general & administrative) expenses were $91.3 million for second-quarter 2019 in comparison with $95 million in the prior-year quarter.
Gross profit moved down to $248.3 million in second-quarter 2019 from $331.4 million a year ago. Operating income declined to $119.9 million from $190.3 million.
Financial Position
American Axle had cash and cash equivalents of $248.8 million as of Jun 30, 2019, down from $476 million as of Dec 31, 2018. Net long-term debt was $3.7 billion as of Jun 30, 2019, similar to the figure recorded on Dec 31, 2018.
For the three months ending Jun 30, 2019, the company’s adjusted free cash outflow was $119.3 million compared with $100.3 million for the same period of last year.
Outlook
For 2019, the company expects sales of $6.9-$7 billion, down from the previously mentioned $7.3-$7.4 billion. Also, its adjusted EBIDTA is now projected to be $1.05-$1.10 billion, down from the previous guidance of $1.2-$1.25 billion.
Zacks Rank & Stocks to Consider
Currently, American Axle has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Copart, Inc. (CPRT - Free Report) , CarMax, Inc. (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) . While Copart currently sports a Zacks Rank #1 (Strong Buy), CarMax and Gentex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 30.1%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 14%.
Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 15.5%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks 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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