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American Axle's stock rallies profit beats expectations, provides upbeat sales outlook

Tomi Kilgore

Shares of American Axle & Manufacturing Holdings Inc. surged 5.2% in premarket trade Friday, after the auto parts supplier reported a first-quarter profit that beat expectations, although revenue fell a touch shy, and provided an upbeat outlook. Net income declined to $41.7 million, or 36 cents a share, from $89.4 million, or 78 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share declined to 36 cents from 98 cents, but was above the FactSet consensus of 34 cents. Sales fell to $1.72 billion from $1.86 billion, just below the FactSet consensus of $1.74 billion. For 2019, the company expects sales of $7.3 billion to $7.4 billion, compared with the FactSet consensus of $7.3 billion. Separately, the company issued a notice of redemption for the remaining $100 million of its 7.75% senior unsecured notes due 2019. The stock has surged 29.3% year to date through Thursday, while the S&P 500 has gained 16.4%.