Did you analyze how American Axle & Manufacturing (AXL Quick QuoteAXL - Free Report) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this maker of auto parts, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

While delving into AXL's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

For the quarter, the company's total revenue amounted to $1.54 billion, experiencing a decline of 5.9% year over year. Next, we'll explore the breakdown of AXL's international revenue to understand the importance of its overseas business operations.

A Look into AXL's International Revenue Streams

Of the total revenue, $145.6 million came from Asia during the last fiscal quarter, accounting for 9.5%. This represented a surprise of +18.21% as analysts had expected the region to contribute $123.17 million to the total revenue. In comparison, the region contributed $141.1 million, or 10%, and $149.1 million, or 9.1%, to total revenue in the previous and year-ago quarters, respectively.

Europe accounted for 13% of the company's total revenue during the quarter, translating to $200.1 million. Revenues from this region represented a surprise of -4.25%, with Wall Street analysts collectively expecting $208.97 million. When compared to the preceding quarter and the same quarter in the previous year, Europe contributed $195.1 million (13.8%) and $233.6 million (14.3%) to the total revenue, respectively.

South America generated $50 million in revenues for the company in the last quarter, constituting 3.3% of the total. This represented a surprise of +23.92% compared to the $40.35 million projected by Wall Street analysts. Comparatively, in the previous quarter, South America accounted for $42.1 million (3%), and in the year-ago quarter, it contributed $42.7 million (2.6%) to the total revenue.

Revenue Projections for Overseas Markets

Wall Street analysts expect American Axle to report $1.48 billion in total revenue for the current fiscal quarter, indicating a decline of 1.3% from the year-ago quarter. Asia, Europe and South America are expected to contribute 9.6% (translating to $142.25 million), 14.2% ($210.4 million), and 3.2% ($46.98 million) to the total revenue, respectively.

For the full year, a total revenue of $5.82 billion is expected for the company, reflecting a decline of 5% from the year before. The revenues from Asia, Europe and South America are expected to make up 9.5%, 14.1%, and 2.9% of this total, corresponding to $552.75 million, $818.33 million, and $170.59 million, respectively.

Key Takeaways

American Axle's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

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.

Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

At present, American Axle holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of American Axle & Manufacturing's Recent Stock Market Performance

The stock has witnessed an increase of 19.7% over the past month versus the Zacks S&P 500 composite's an increase of 2.7%. In the same interval, the Zacks Auto-Tires-Trucks sector, to which American Axle belongs, has registered an increase of 6.8%. Over the past three months, the company's shares saw an increase of 17.9%, while the S&P 500 increased by 13.2%. In comparison, the sector experienced an increase of 10.5% during this timeframe.