American Axle Posts Mixed Results in Q3 2024, Adjusts Annual Forecast
American Axle & Manufacturing Holdings (AXL) reported adjusted earnings of 20 cents per share for the third-quarter 2024, exceeding the Zacks Consensus Estimate by 19 cents. This is a significant change from the loss of 11 cents per share reported in the same quarter last year.
The company’s quarterly revenue totaled $1.50 billion, falling short of the Zacks Consensus Estimate of $1.51 billion. This represents a 3% decline compared to the previous year.
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American Axle Price, Consensus, and Earnings Surprise
American Axle & Manufacturing Holdings, Inc. price-consensus-eps-surprise-chart | American Axle & Manufacturing Holdings, Inc. Quote
Examining Segment Performance
In the recent quarter, the Driveline segment achieved sales of $1.04 billion, down 1.7% year over year but exceeding our estimate of $1.03 billion. Adjusted EBITDA for the segment was $135.7 million, slightly below our estimate of $141.5 million and a decrease of 1.1% from the previous year.
The Metal Forming segment generated revenues of $596.5 million, a decline of 4.5% from the same period last year, and fell short of our estimate of $604.5 million. However, adjusted EBITDA significantly increased to $38.7 million, reflecting a remarkable 98.5% rise, well above our estimate of $21.3 million.
Financial Overview
In the third quarter, American Axle’s selling, general, and administrative (SG&A) expenses rose to $94.6 million, compared to $81.8 million in the prior year.
Operating activities generated net cash of $143.6 million, down from $178.3 million during the same period last year.
The company’s capital expenditures for the quarter were $72.9 million, up from $47.5 million in the previous year.
For the three months ending September 30, 2024, adjusted free cash flow stood at $74.6 million, a decline from $135.8 million recorded in the same period last year.
As of September 30, 2024, American Axle held cash and cash equivalents of $542.5 million, an increase from $519.9 million at the end of 2023.
The company’s net long-term debt decreased to $2.64 billion from $2.75 billion at the end of the previous year.
Updated 2024 Outlook for AXL
American Axle updated its full-year 2024 revenue forecast to between $6.10 billion and $6.15 billion, lowering it from the prior range of $6.10 billion to $6.30 billion.
Adjusted EBITDA is now estimated to fall between $715 million and $745 million, revised from the earlier projection of $705 million to $755 million.
Expected adjusted free cash flow is set in the range of $200 million to $220 million, down from the previous expectation of $200 million to $240 million.
Zacks Rank & Recommendations
Currently, AXL holds a Zacks Rank #3 (Hold).
In contrast, notable auto industry stocks include Dorman Products, Inc. (DORM), Tesla, Inc. (TSLA), and BYD Company Limited (BYDDY), all rated Zacks Rank #1 (Strong Buy) at this time.
The Zacks Consensus Estimate for DORM’s 2024 sales indicates a year-over-year growth of 3.66%, with estimated earnings rising by 51.98%. EPS estimates for 2024 and 2025 have improved by 25 and 21 cents, respectively, in the past week.
For TSLA, the 2024 sales growth forecast is 2.94%, while EPS estimates for 2024 and 2025 have increased by 20 and 13 cents, respectively, in the past 30 days.
BYDDY’s 2024 projections include year-over-year sales growth of 23.61% and earnings growth of 31.51%, along with EPS revisions of 23 and 26 cents for 2024 and 2025, respectively, in the last week.
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American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report
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