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American Axle Q3 Earnings Beat Expectations, Guidance Revised
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American Axle & Manufacturing Holdings (AXL - Free Report) reported third-quarter 2024 adjusted earnings of 20 cents per share, which surpassed the Zacks Consensus Estimate of a cent. The company had incurred a loss of 11 cents per share in the year-ago quarter.
The company generated quarterly revenues of $1.50 billion, missing the Zacks Consensus Estimate of $1.51 billion. Revenues declined 3% on a year-over-year basis.
Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
In the reported quarter, the Driveline segment recorded sales of $1.04 billion, down 1.7% year over year. The figure, however, surpassed our estimate of $1.03 billion. The segment registered adjusted EBITDA of $135.7 million, which fell 1.1% on a year-over-year basis and missed our estimate of $141.5 million.
The company’s Metal Forming business generated revenues of $596.5 million, which fell 4.5% from the year-ago quarter’s figure and missed our estimate of $604.5 million. The segment registered an adjusted EBITDA of $38.7 million, which rose 98.5% and outpaced our estimate of $21.3 million.
Financial Position
American Axle’s third-quarter SG&A expenses totaled $94.6 million, up from the year-ago quarter’s reported figure of $81.8 million.
Net cash provided by operating activities was $143.6 million, down from $178.3 million in the year-ago period.
Capital spending in the quarter was $72.9 million, up from $47.5 million reported in the year-ago period.
In the three months ended Sept. 30, 2024, the company posted an adjusted free cash flow of $74.6 million compared with $135.8 million recorded in the year-ago period.
As of Sept. 30, 2024, American Axle had cash and cash equivalents of $542.5 million, up from $519.9 million as of Dec. 31, 2023.
Its net long-term debt was $2.64 billion, down from $2.75 billion as of Dec. 31, 2023.
AXL Revises 2024 Outlook
American Axle now envisions full-year 2024 revenues in the band of $6.10-$6.15 billion compared with the prior estimated range of $6.10-$6.30 billion.
Adjusted EBITDA is estimated in the band of $715-$745 million compared with the previous projection of $705-$755 million.
Adjusted free cash flow is expected in the range of $200-$220 million compared with the previous estimate of $200-$240 million.
The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 25 cents and 21 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.94%. EPS estimates for 2024 and 2025 have improved by 20 cents and 13 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 23.61% and 31.51%, respectively. EPS estimates for 2024 and 2025 have improved by 23 cents and 26 cents, respectively, in the past seven days.
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American Axle Q3 Earnings Beat Expectations, Guidance Revised
American Axle & Manufacturing Holdings (AXL - Free Report) reported third-quarter 2024 adjusted earnings of 20 cents per share, which surpassed the Zacks Consensus Estimate of a cent. The company had incurred a loss of 11 cents per share in the year-ago quarter.
The company generated quarterly revenues of $1.50 billion, missing the Zacks Consensus Estimate of $1.51 billion. Revenues declined 3% on a year-over-year basis.
Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.
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 $1.04 billion, down 1.7% year over year. The figure, however, surpassed our estimate of $1.03 billion. The segment registered adjusted EBITDA of $135.7 million, which fell 1.1% on a year-over-year basis and missed our estimate of $141.5 million.
The company’s Metal Forming business generated revenues of $596.5 million, which fell 4.5% from the year-ago quarter’s figure and missed our estimate of $604.5 million. The segment registered an adjusted EBITDA of $38.7 million, which rose 98.5% and outpaced our estimate of $21.3 million.
Financial Position
American Axle’s third-quarter SG&A expenses totaled $94.6 million, up from the year-ago quarter’s reported figure of $81.8 million.
Net cash provided by operating activities was $143.6 million, down from $178.3 million in the year-ago period.
Capital spending in the quarter was $72.9 million, up from $47.5 million reported in the year-ago period.
In the three months ended Sept. 30, 2024, the company posted an adjusted free cash flow of $74.6 million compared with $135.8 million recorded in the year-ago period.
As of Sept. 30, 2024, American Axle had cash and cash equivalents of $542.5 million, up from $519.9 million as of Dec. 31, 2023.
Its net long-term debt was $2.64 billion, down from $2.75 billion as of Dec. 31, 2023.
AXL Revises 2024 Outlook
American Axle now envisions full-year 2024 revenues in the band of $6.10-$6.15 billion compared with the prior estimated range of $6.10-$6.30 billion.
Adjusted EBITDA is estimated in the band of $715-$745 million compared with the previous projection of $705-$755 million.
Adjusted free cash flow is expected in the range of $200-$220 million compared with the previous estimate of $200-$240 million.
Zacks Rank & Key Picks
AXL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , Tesla, Inc. (TSLA - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 25 cents and 21 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.94%. EPS estimates for 2024 and 2025 have improved by 20 cents and 13 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 23.61% and 31.51%, respectively. EPS estimates for 2024 and 2025 have improved by 23 cents and 26 cents, respectively, in the past seven days.