Have you evaluated the performance of American Axle & Manufacturing's (AXL Quick QuoteAXL - Free Report) international operations for the quarter ending March 2025? Given the extensive global presence of this maker of auto parts, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Our review of AXL's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $1.41 billion, marking a decrease of 12.2% from the year-ago quarter. We will next turn our attention to dissecting AXL's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Closer Look at AXL's Revenue Streams Abroad

Of the total revenue, $141.1 million came from Asia during the last fiscal quarter, accounting for 10.00%. This represented a surprise of +14.52% as analysts had expected the region to contribute $123.21 million to the total revenue. In comparison, the region contributed $156.6 million, or 11.34%, and $150.7 million, or 9.38%, to total revenue in the previous and year-ago quarters, respectively.

Europe generated $195.1 million in revenues for the company in the last quarter, constituting 13.82% of the total. This represented a surprise of -2.06% compared to the $199.21 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $198.7 million (14.39%), and in the year-ago quarter, it contributed $245.8 million (15.30%) to the total revenue.

During the quarter, South America contributed $42.1 million in revenue, making up 2.98% of the total revenue. When compared to the consensus estimate of $31.44 million, this meant a surprise of +33.91%. Looking back, South America contributed $46.5 million, or 3.37%, in the previous quarter, and $36.5 million, or 2.27%, in the same quarter of the previous year.

Prospective Revenues in International Markets

Wall Street analysts expect American Axle to report $1.52 billion in total revenue for the current fiscal quarter, indicating a decline of 6.8% from the year-ago quarter. Asia, Europe and South America are expected to contribute 8.1% ($123.64 million), 13.8% ($209.76 million) and 2.7% ($40.51 million) to the total revenue, respectively.

For the entire year, the company's total revenue is forecasted to be $5.88 billion, which is a reduction of 4.1% from the previous year. The revenue contributions from different regions are expected as follows: Asia will contribute 9.2% ($542.33 million), Europe 14.2% ($833.16 million) and South America 2.8% ($162.14 million) to the total revenue.

Final Thoughts

American Axle's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.

American Axle currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at American Axle's Recent Stock Price Performance

Over the past month, the stock has gained 45.3% versus the Zacks S&P 500 composite's 9.1% increase. The Zacks Auto-Tires-Trucks sector, of which American Axle is a part, has risen 20.7% over the same period. The company's shares have declined 10.9% over the past three months compared to the S&P 500's 3.1% decline. Over the same period, the sector has declined 2.3%.