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American Axle (AXL) Beats on Q3 Earnings & Revenues, Lowers View

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American Axle & Manufacturing Holdings (AXL - Free Report) reported adjusted earnings of 15 cents per share in third-quarter 2021, topping the Zacks Consensus Estimate of 2 cents. The bottom line, however, fell from $1.15 a share earned a year ago. The company generated quarterly revenues of $1,213.1 million, surpassing the Zacks Consensus Estimate of $1,179.6 million. Revenues declined 14.2% on a year-over-year basis led by the unfavorable impact of semiconductor chip shortage.

Segmental Performance

In the September quarter, the Driveline segment recorded sales of $870.4 million, falling around 18% year over year. The segment registered adjusted EBITDA of $128.4 million, falling from $199.5 million.

The company’s Metal Forming business generated revenues of $422.7 million during the third quarter, a 15.1% decline from the year-ago figure. Also, the segment witnessed adjusted EBITDA of $54.8 million, declining from $97.6 million.

Financial Position

American Axle’s third-quarter 2021 SG&A expenses totaled $90.5 million, up from $66.5 million incurred in the prior-year period.

For the three-month period ended Sep 30, 2021, the company posted adjusted free cash flow (FCF) of $69.1 million, falling sharply from FCF of $217.2 million recorded in the year-earlier period. Capital spending for the quarter came in at $33.2 million, down from $40.5 million.

As of Sep 30, 2021, American Axle had cash and cash equivalents of $500.7 million compared with $557 million on Dec 31, 2020, and net long-term debt of $3,104.1 million, down from $3,441.3 million as of Dec 31, 2020.

Outlook

American Axle has updated its guidance for full-year 2021. Revenues are envisioned in the range of $5.15-$5.25 billion. Projections for adjusted EBITDA have been brought down to the range of $830-$850 million from the previous range of $875-$925 million. Adjusted FCF is now in the range of $400 million instead of the prior forecast of $350-$425 million.

American Axle, which shares space with Meritor (MTOR - Free Report) , LCI Industries (LCII - Free Report) , and Luminar Technologies (LAZR - Free Report) , currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.