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American Axle (AXL) Q4 Earnings & Sales Top Estimates, Up Y/Y
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American Axle & Manufacturing Holdings (AXL - Free Report) posted adjusted earnings of 51 cents per share, beating the Zacks Consensus Estimate of earnings of 30 cents. Moreover, the reported figure comes in higher than the year-ago quarter’s earnings of 13 cents per share.
The Detroit-based global automotive parts supplier generated revenues of $1,437.9 million, surpassing the Zacks Consensus Estimate of $1,365 million on higher-than-anticipated revenues from both major segments of the company.
Revenues also inched up 0.19% from the year-ago figure of $1,430 million. Per the company, the coronavirus crisis affected sales to the tune of $40 million for the reported quarter.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
For the December-end quarter, the Driveline segment recorded sales of $1,105.7 million, up 8.1% year over year. The metric also outpaced the Zacks Consensus Estimate of $1,047 million. Also, the segment posted an adjusted EBITDA of $186.2 million, beating the consensus mark of $148 million and higher than the $124.9 million witnessed in the prior-year quarter.
The company’s Metal Forming business generated revenues of $433.4 million during the fourth quarter, up 8.03% from the year-ago figure of $401.2 million. The reported figure also topped the consensus mark of $409 million. Nonetheless, the segment witnessed an adjusted EBITDA of $75.3 million, exceeding the consensus mark of $69 million and higher than the prior year’s income of $66.2 million.
Financial Position
American Axle’s fourth-quarter 2020 SG&A (selling, general & administrative) expenses totaled $83.3 million, down from the $90 million incurred in the prior-year period.
For the three-month period ended Dec 31, 2020, the company posted adjusted free cash flow (FCF) of $172.7 million, as against the adjusted FCF of $116.5 million recorded in the year-earlier period. Capital spending for the quarter came in at $69.2 million, down from the year-ago period’s $95 million.
As of Dec 31, 2020, American Axle had cash and cash equivalents of $557 million compared with $532 million on Dec 31, 2019. The company had net long-term debt of $3,441.3 million as of Dec 31, 2020, down from $3,612.3 million on Dec 31, 2019.
Outlook for 2021
American Axle projects full-year 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. The company’s gross new and incremental business backlog launching from 2021-2023 is estimated at approximately $600 million in future annual sales.
Some other top-ranked stocks in the same sector are Magna International (MGA - Free Report) , Meritor Inc. and Adient Plc (ADNT - Free Report) , all of which sport a Zacks Rank of 1, at present.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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American Axle (AXL) Q4 Earnings & Sales Top Estimates, Up Y/Y
American Axle & Manufacturing Holdings (AXL - Free Report) posted adjusted earnings of 51 cents per share, beating the Zacks Consensus Estimate of earnings of 30 cents. Moreover, the reported figure comes in higher than the year-ago quarter’s earnings of 13 cents per share.
The Detroit-based global automotive parts supplier generated revenues of $1,437.9 million, surpassing the Zacks Consensus Estimate of $1,365 million on higher-than-anticipated revenues from both major segments of the company.
Revenues also inched up 0.19% from the year-ago figure of $1,430 million. Per the company, the coronavirus crisis affected sales to the tune of $40 million for the reported quarter.
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
For the December-end quarter, the Driveline segment recorded sales of $1,105.7 million, up 8.1% year over year. The metric also outpaced the Zacks Consensus Estimate of $1,047 million. Also, the segment posted an adjusted EBITDA of $186.2 million, beating the consensus mark of $148 million and higher than the $124.9 million witnessed in the prior-year quarter.
The company’s Metal Forming business generated revenues of $433.4 million during the fourth quarter, up 8.03% from the year-ago figure of $401.2 million. The reported figure also topped the consensus mark of $409 million. Nonetheless, the segment witnessed an adjusted EBITDA of $75.3 million, exceeding the consensus mark of $69 million and higher than the prior year’s income of $66.2 million.
Financial Position
American Axle’s fourth-quarter 2020 SG&A (selling, general & administrative) expenses totaled $83.3 million, down from the $90 million incurred in the prior-year period.
For the three-month period ended Dec 31, 2020, the company posted adjusted free cash flow (FCF) of $172.7 million, as against the adjusted FCF of $116.5 million recorded in the year-earlier period. Capital spending for the quarter came in at $69.2 million, down from the year-ago period’s $95 million.
As of Dec 31, 2020, American Axle had cash and cash equivalents of $557 million compared with $532 million on Dec 31, 2019. The company had net long-term debt of $3,441.3 million as of Dec 31, 2020, down from $3,612.3 million on Dec 31, 2019.
Outlook for 2021
American Axle projects full-year 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. The company’s gross new and incremental business backlog launching from 2021-2023 is estimated at approximately $600 million in future annual sales.
Zacks Rank & Other Stocks to Consider
American Axle currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stocks in the same sector are Magna International (MGA - Free Report) , Meritor Inc. and Adient Plc (ADNT - Free Report) , all of which sport a Zacks Rank of 1, at present.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>