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American Axle (AXL) Q4 Earnings & Sales Lag Estimates, Down Y/Y
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American Axle & Manufacturing Holdings (AXL - Free Report) incurred a loss of 9 cents per share in fourth-quarter 2021. The Zacks Consensus Estimate was pegged at earnings of 4 cents. The bottom line plummeted 118% from 51 cents a share earned a year ago. The company generated quarterly revenues of $1,235.1 million, lagging the Zacks Consensus Estimate of $1,289.1 million. Revenues declined 14.1% on a year-over-year basis, led by the unfavorable impact of the semiconductor chip shortage.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
In the reported quarter, the Driveline segment recorded sales of $913 million, falling 11.3% year over year. The segment registered adjusted EBITDA of $127.5 million, down 23.1%.
The company’s Metal Forming business generated revenues of $410.1 million during the fourth quarter, a 23% decline from the year-ago figure. The segment witnessed adjusted EBITDA of $37.1 million, declining 61.2%.
Financial Position
American Axle’s fourth-quarter SG&A expenses totaled $77.5 million, down from $83.3 million incurred in the prior-year quarter.
For the three months ended Dec 31, 2021, the company posted adjusted free cash flow (FCF) of $43.6 million, falling sharply from FCF of $172.7 million recorded in the year-earlier period. Capital spending for the quarter came in at $65.2 million, down from $69.2 million.
As of Dec 31, 2021, American Axle had cash and cash equivalents of $530.2 million compared with $557 million on Dec 31, 2020. Its net long-term debt was $3,085.7 million, down from $3,441.3 million as of Dec 31, 2020.
Outlook
American Axle envisions revenues for 2022 in the range of $5.6-$5.9 billion, which includes an additional $150-$200 million increase in index-related metal market customer pass-throughs and foreign currency versus 2021. Estimation for adjusted EBITDA is in the range of $800-$875 million. Adjusted FCF is expected within $300-$375 million, considering capital spending between 3.5% and 4% of sales.
Zacks Rank & Key Picks
Currently, American Axle has a Zacks Rank #5 (Strong Sell).
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American Axle (AXL) Q4 Earnings & Sales Lag Estimates, Down Y/Y
American Axle & Manufacturing Holdings (AXL - Free Report) incurred a loss of 9 cents per share in fourth-quarter 2021. The Zacks Consensus Estimate was pegged at earnings of 4 cents. The bottom line plummeted 118% from 51 cents a share earned a year ago. The company generated quarterly revenues of $1,235.1 million, lagging the Zacks Consensus Estimate of $1,289.1 million. Revenues declined 14.1% on a year-over-year basis, led by the unfavorable impact of the semiconductor chip shortage.
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
In the reported quarter, the Driveline segment recorded sales of $913 million, falling 11.3% year over year. The segment registered adjusted EBITDA of $127.5 million, down 23.1%.
The company’s Metal Forming business generated revenues of $410.1 million during the fourth quarter, a 23% decline from the year-ago figure. The segment witnessed adjusted EBITDA of $37.1 million, declining 61.2%.
Financial Position
American Axle’s fourth-quarter SG&A expenses totaled $77.5 million, down from $83.3 million incurred in the prior-year quarter.
For the three months ended Dec 31, 2021, the company posted adjusted free cash flow (FCF) of $43.6 million, falling sharply from FCF of $172.7 million recorded in the year-earlier period. Capital spending for the quarter came in at $65.2 million, down from $69.2 million.
As of Dec 31, 2021, American Axle had cash and cash equivalents of $530.2 million compared with $557 million on Dec 31, 2020. Its net long-term debt was $3,085.7 million, down from $3,441.3 million as of Dec 31, 2020.
Outlook
American Axle envisions revenues for 2022 in the range of $5.6-$5.9 billion, which includes an additional $150-$200 million increase in index-related metal market customer pass-throughs and foreign currency versus 2021. Estimation for adjusted EBITDA is in the range of $800-$875 million. Adjusted FCF is expected within $300-$375 million, considering capital spending between 3.5% and 4% of sales.
Zacks Rank & Key Picks
Currently, American Axle has a Zacks Rank #5 (Strong Sell).
Better-ranked players in the auto space include Tesla (TSLA - Free Report) , sporting a Zacks Rank #1(Strong Buy) and Goodyear Tire (GT - Free Report) and Genuine Parts (GPC - Free Report) , each carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 5.4% over a year.
Goodyear has an expected earnings growth rate of 51.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 1.1% upward over the past 60 days.
Goodyear’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GT pulled off a trailing four-quarter earnings surprise of 228.5%, on average. The stock has also rallied 12.1% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of around 16%, on average. The stock has also rallied 27.6% over a year.