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American Axle's (AXL) Q4 Earnings Miss, Revenues Grow Y/Y
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American Axle & Manufacturing Holdings (AXL - Free Report) reported a loss of 7 cents per share in fourth-quarter 2022, as against the Zacks Consensus Estimate of earnings of 1 cent. Lower-than-anticipated sales from the Driveline unit and lower-than-anticipated adjusted EBITDA in the Metal Forming business resulted in the underperformance. The reported loss narrowed from 9 cents a share incurred a year ago. The company generated quarterly revenues of $1,392.7 million, surpassing the Zacks Consensus Estimate of $1,383 million. Revenues increased 12.8% on a year-over-year basis, led by favorable volume/mix and contribution from the Tekfor acquisition.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
In the reported quarter, the Driveline segment recorded sales of $967.2 million, rising 6% year over year but missing the Zacks Consensus Estimate of $1,046 million. The segment registered adjusted EBITDA of $126.7 million, declining 0.1% on a year-over-year basis but beating the consensus mark of $107 million.
The company’s Metal Forming business generated revenues of $527.1 million during the quarter, an increase of 28% from the year-ago figure. It exceeded the consensus estimate of $440 million. The segment witnessed adjusted EBITDA of $31 million, falling 16.4% and lagging the consensus mark of $59 million.
Financial Position
American Axle’s fourth-quarter SG&A expenses totaled $88.5 million, down from $77.5 million incurred in the prior-year quarter.
Net cash provided by operating activities was $148.5 million, up from $102.4 million in the year-ago period. Capital spending in the quarter was $53.1 million, down from $65.2 million. In the three months ended Dec 31, 2022, the company posted an adjusted free cash flow of $99 million, up from $43.6 million recorded in the year-earlier period.
In the quarter, American Axle had cash and cash equivalents of $511.5 million compared with $530.2 million on Dec 31, 2021. Its net long-term debt was $2,845.1 million, down from $3,085.7 million as of Dec 31, 2021.
2023 Outlook
American Axle envisions revenues in the range of $5.95-$6.25 billion. The estimate for adjusted EBITDA is in the range of $725-$800 million. Adjusted FCF is expected to be in the range of $225-$300 million, considering capital spending between 3.5% and 4% of sales.
Zacks Rank & Key Picks
AXL currently has a Zacks Rank #5 (Strong Sell).
A few better-ranked players in the auto space include Wabash National (WNC - Free Report) , Modine Manufacturing (MOD - Free Report) and Hyliion (HYLN - Free Report) . WNC and MOD sport a Zacks Rank #1 (Strong Buy) and HYLN carries a Zacks Rank #2 (Buy).
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine designs and manufactures world-class thermal dynamic equipment for today's agricultural, mining & construction equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
Hyliion provides electrified powertrain solutions for Class 8 commercial vehicles. The Zacks Consensus Estimate for HYLN’s 2023 sales implies year-over-year growth of 538.07%.
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American Axle's (AXL) Q4 Earnings Miss, Revenues Grow Y/Y
American Axle & Manufacturing Holdings (AXL - Free Report) reported a loss of 7 cents per share in fourth-quarter 2022, as against the Zacks Consensus Estimate of earnings of 1 cent. Lower-than-anticipated sales from the Driveline unit and lower-than-anticipated adjusted EBITDA in the Metal Forming business resulted in the underperformance. The reported loss narrowed from 9 cents a share incurred a year ago. The company generated quarterly revenues of $1,392.7 million, surpassing the Zacks Consensus Estimate of $1,383 million. Revenues increased 12.8% on a year-over-year basis, led by favorable volume/mix and contribution from the Tekfor acquisition.
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 $967.2 million, rising 6% year over year but missing the Zacks Consensus Estimate of $1,046 million. The segment registered adjusted EBITDA of $126.7 million, declining 0.1% on a year-over-year basis but beating the consensus mark of $107 million.
The company’s Metal Forming business generated revenues of $527.1 million during the quarter, an increase of 28% from the year-ago figure. It exceeded the consensus estimate of $440 million. The segment witnessed adjusted EBITDA of $31 million, falling 16.4% and lagging the consensus mark of $59 million.
Financial Position
American Axle’s fourth-quarter SG&A expenses totaled $88.5 million, down from $77.5 million incurred in the prior-year quarter.
Net cash provided by operating activities was $148.5 million, up from $102.4 million in the year-ago period. Capital spending in the quarter was $53.1 million, down from $65.2 million. In the three months ended Dec 31, 2022, the company posted an adjusted free cash flow of $99 million, up from $43.6 million recorded in the year-earlier period.
In the quarter, American Axle had cash and cash equivalents of $511.5 million compared with $530.2 million on Dec 31, 2021. Its net long-term debt was $2,845.1 million, down from $3,085.7 million as of Dec 31, 2021.
2023 Outlook
American Axle envisions revenues in the range of $5.95-$6.25 billion. The estimate for adjusted EBITDA is in the range of $725-$800 million. Adjusted FCF is expected to be in the range of $225-$300 million, considering capital spending between 3.5% and 4% of sales.
Zacks Rank & Key Picks
AXL currently has a Zacks Rank #5 (Strong Sell).
A few better-ranked players in the auto space include Wabash National (WNC - Free Report) , Modine Manufacturing (MOD - Free Report) and Hyliion (HYLN - Free Report) . WNC and MOD sport a Zacks Rank #1 (Strong Buy) and HYLN carries a Zacks Rank #2 (Buy).
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of 13.06% and 24%, respectively.
Modine designs and manufactures world-class thermal dynamic equipment for today's agricultural, mining & construction equipment. The Zacks Consensus Estimate for MOD’s 2023 sales and earnings implies year-over-year growth of 11.43% and 43.09%, respectively.
Hyliion provides electrified powertrain solutions for Class 8 commercial vehicles. The Zacks Consensus Estimate for HYLN’s 2023 sales implies year-over-year growth of 538.07%.
You can see the complete list of today’s Zacks #1 Rank stocks here.