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American Axle (AXL) to Report Q1 Earnings: What Lies Ahead?

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American Axle & Manufacturing Holdings (AXL - Free Report) is slated to release first-quarter 2021 results on May 7, before the opening bell. The Zacks Consensus Estimate for earnings is pegged at 25 cents per share on revenues of $1.31 billion for the quarter.

This automotive parts supplier registered robust earnings in the last reported quarter on higher-than-expected EBITDA across both of the company’s segments.

American Axle beat estimates in each of the trailing four quarters, the average surprise being 188.93%.

Trend in Estimate Revisions

The Zacks Consensus Estimate for American Axle’s first-quarter earnings per share witnessed a downward revision of one cent to 25 cents in the past 30 days. Nonetheless, this compares favorably with the year-ago quarter’s earnings of 20 cents per share, indicating 25% growth, year on year. However, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 2.3%.

Earnings Whispers

Our proven model predicts an earnings beat for American Axle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This has been elaborated below.

Earnings ESP: American Axle has an Earnings ESP of +0.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Axle currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors

With the economy gradually recovering from the pandemic blues, auto sales across the globe have managed to rebound, underlined by the rising momentum of new vehicle sales. This is likely to have buoyed American Axle’s first-quarter sales and earnings.

Notably, the Zacks Consensus Estimate for the Driveline segment’s quarterly net sales is pegged at $1,094 million, suggesting a jump from the $1,032 million reported in the year-ago period. Moreover, the consensus estimate for EBITDA from the segment is pinned at $169 million, indicating growth from the $139 million recorded in the prior-year quarter.  

The consensus mark for the Metal Forming segment’s quarterly net sales is pinned at $446 million, calling for an increase from the year-earlier quarter’s $422 million. In addition, the consensus estimate for the segment’s EBITDA is pinned at $69 million, suggesting growth from the prior-year quarter’s $66 million.
 
Apart from this, the automotive parts supplier’s cost-containment efforts in the wake of the pandemic are likely to have aided the margins during the March-end quarter.

Other Stocks to Consider

Here are a few other stocks worth considering, as these too have the right combination of elements to come up with an earnings beat this time around:

Nikola Corporation (NKLA - Free Report) has an Earnings ESP of +12.19% and currently carries a Zacks Rank of 3. The company is slated to release earnings figures on May 7.

Boradmark Realty Capital (BRMK - Free Report) has an Earnings ESP of +2.44% and carries a Zacks Rank #3 at present. The company will announce quarterly results on May 10.

American Well Corporation (AMWL - Free Report) has an Earnings ESP of +9.44% and carries a Zacks Rank #3, currently. The company is scheduled to report quarterly numbers on May 12.

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