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American Axle (AXL) Q1 Earnings Top Estimates, Revenues Down Y/Y

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American Axle & Manufacturing Holdings (AXL - Free Report) reported earnings of 19 cents per share in first-quarter 2022. The Zacks Consensus Estimate was pegged at a loss of 1 cent. The bottom line plummeted 66.7% from 57 cents a share earned a year ago. The company generated quarterly revenues of $1,436.2 million, surpassing the Zacks Consensus Estimate of $1,329 million. Revenues fell 0.8% on a year-over-year basis, led by the unfavorable impact of the semiconductor chip shortage.

Segmental Performance

In the reported quarter, the Driveline segment recorded sales of $1,061.8 million, rising 3.5% year over year. The segment registered adjusted EBITDA of $132.5 million, down 22.3%.

The company’s Metal Forming business generated revenues of $481.8 million during the first quarter, a marginal decline of 1.5% from the year-ago figure. The segment witnessed adjusted EBITDA of $63.6 million, falling 31.2%.

Financial Position

American Axle’s first-quarter SG&A expenses totaled $86.1 million, down from $90 million incurred in the prior-year quarter.

In the three months ended Mar 31, 2022, the company posted an adjusted free cash flow of $53.9 million, falling sharply from $174.1 million recorded in the year-earlier period. Capital spending in the quarter came in at $24.4 million, down from $39.6 million.

In the quarter, American Axle had cash and cash equivalents of $529.9 million compared with $530.2 million on Dec 31, 2021. Its net long-term debt was $3,062 million, down from $3,085.7 million as of Dec 31, 2021.

Outlook

American Axle updated its outlook for 2022. It now envisions revenues for 2022 in the range of $5.6-$5.8 billion, slightly down from $5.6-$5.8 billion. Estimation for adjusted EBITDA is now in the range of $785-$830 million, down from $800-$875 million estimated earlier. Adjusted FCF remains unchanged in the band of $300-$350 million, considering capital spending between 3.5% and 4% of sales.

Zacks Rank & Key Picks

AXL currently carries a Zacks Rank #3 (Hold).

Other top-ranked players in the auto space include BRP Group, Inc. (DOOO - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Dorman Products (DORM - Free Report) and Standard Motor Products (SMP - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

BRP Group has an expected earnings growth rate of 9.1% for fiscal 2023. The Zacks Consensus Estimate for current-year earnings has been revised around 7.9% upward in the past 60 days.

BRP Group’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. DOOO pulled off a trailing four-quarter earnings surprise of 68%, on average. The stock has declined 13.5% over the past year.

Dorman Products has an expected earnings growth rate of 18.8% for the current year. The Zacks Consensus Estimate for current-year earnings has been marginally revised 0.7% upwards in the past 60 days.

Dorman Products’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. DORM pulled off a trailing four-quarter earnings surprise of 3.1%, on average. The stock has lost 7.2% over the past year.

The Zacks Consensus Estimate for Standard Motor’s current-year earnings has been revised around 1.1% upward in the past 60 days.

Standard Motor’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. SMP pulled off a trailing four-quarter earnings surprise of 60.5%, on average. The stock has lost 13.9% over the past year.