We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Axle (AXL) Q2 Earnings Miss Estimates, Down Y/Y
Read MoreHide Full Article
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) posted adjusted earnings of 55 cents per share in the second quarter of 2019, missing the Zacks Consensus Estimate of 59 cents. In second-quarter 2018, adjusted earnings were $1.23.
In the quarter under review, the company reported net income of $52.7 million compared with $151.3 million a year ago.
Sales declined to $1.70 billion from the year-ago figure of $1.91 billion. The top line missed the Zacks Consensus Estimate of $1.8 billion.
American Axle’s SG&A (selling, general & administrative) expenses were $91.3 million for second-quarter 2019 in comparison with $95 million in the prior-year quarter.
Gross profit moved down to $248.3 million in second-quarter 2019 from $331.4 million a year ago. Operating income declined to $119.9 million from $190.3 million.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
American Axle had cash and cash equivalents of $248.8 million as of Jun 30, 2019, down from $476 million as of Dec 31, 2018. Net long-term debt was $3.7 billion as of Jun 30, 2019, similar to the figure recorded on Dec 31, 2018.
For the three months ending Jun 30, 2019, the company’s adjusted free cash outflow was $119.3 million compared with $100.3 million for the same period of last year.
Outlook
For 2019, the company expects sales of $6.9-$7 billion, down from the previously mentioned $7.3-$7.4 billion. Also, its adjusted EBIDTA is now projected to be $1.05-$1.10 billion, down from the previous guidance of $1.2-$1.25 billion.
Zacks Rank & Stocks to Consider
Currently, American Axle has a Zacks Rank #3 (Hold).
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 30.1%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 14%.
Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 15.5%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
American Axle (AXL) Q2 Earnings Miss Estimates, Down Y/Y
American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) posted adjusted earnings of 55 cents per share in the second quarter of 2019, missing the Zacks Consensus Estimate of 59 cents. In second-quarter 2018, adjusted earnings were $1.23.
In the quarter under review, the company reported net income of $52.7 million compared with $151.3 million a year ago.
Sales declined to $1.70 billion from the year-ago figure of $1.91 billion. The top line missed the Zacks Consensus Estimate of $1.8 billion.
American Axle’s SG&A (selling, general & administrative) expenses were $91.3 million for second-quarter 2019 in comparison with $95 million in the prior-year quarter.
Gross profit moved down to $248.3 million in second-quarter 2019 from $331.4 million a year ago. Operating income declined to $119.9 million from $190.3 million.
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
Financial Position
American Axle had cash and cash equivalents of $248.8 million as of Jun 30, 2019, down from $476 million as of Dec 31, 2018. Net long-term debt was $3.7 billion as of Jun 30, 2019, similar to the figure recorded on Dec 31, 2018.
For the three months ending Jun 30, 2019, the company’s adjusted free cash outflow was $119.3 million compared with $100.3 million for the same period of last year.
Outlook
For 2019, the company expects sales of $6.9-$7 billion, down from the previously mentioned $7.3-$7.4 billion. Also, its adjusted EBIDTA is now projected to be $1.05-$1.10 billion, down from the previous guidance of $1.2-$1.25 billion.
Zacks Rank & Stocks to Consider
Currently, American Axle has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Copart, Inc. (CPRT - Free Report) , CarMax, Inc. (KMX - Free Report) and Gentex Corporation (GNTX - Free Report) . While Copart currently sports a Zacks Rank #1 (Strong Buy), CarMax and Gentex carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copart has an expected long-term growth rate of 20%. In the past year, shares of the company have rallied 30.1%.
CarMax has an expected long-term growth rate of 12.6%. In the past year, shares of the company have moved up 14%.
Gentex has an expected long-term growth rate of 5%. In the past year, shares of the company have returned 15.5%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>