American Axle (AXL) Q3 Loss Wider Than Expected, Revenues Beat
American Axle & Manufacturing Holdings AXL reported a loss per share of 11 cents per share in third-quarter 2023, wider than the Zacks Consensus Estimate of a loss per share of 4 cents. The bottom line fell from earnings of 27 cents per share reported in the year-ago quarter.
The company generated quarterly revenues of $1,551.9 million, outpacing the Zacks Consensus Estimate of $1,481 million. Revenues increased 1.1% on a year-over-year basis.
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
Segmental Performance
In the reported quarter, the Driveline segment recorded sales of $1,061.2 million, rising 1.7% year over year but missing our estimate of $1068.2 million. The segment registered adjusted EBITDA of $137.3 million, remaining flat on a year-over-year basis and lagging our estimate of $142.2 million.
The company’s Metal Forming business generated revenues of $624.8 million during the quarter, down 1.5% from the year-ago figure but exceeding our estimate of $468.2 million. The segment witnessed an adjusted EBITDA of $19.5 million, falling 68.2% and lagging our estimate of $48.3 million.
Financial Position
American Axle’s third-quarter SG&A expenses totaled $81.8 million, down from $85.7 million incurred in the prior-year quarter.
Net cash provided by operating activities was $178.3 million, up from $85.2 million in the year-ago period.
Capital spending in the quarter was $47.5 million, up from $46.6 million.
In the three months ended Sep 30, 2023, the company posted an adjusted free cash flow of $135.8 million, up from $45.8 million recorded in the year-earlier period.
As of Sep 30, 2023, American Axle had cash and cash equivalents of $615.6 million compared with $511.5 million on Dec 31, 2022.
Its net long-term debt was $2,833.9 million, down from $2,845.1 million as of Dec 31, 2022.
Updated 2023 Outlook
American Axle now envisions revenues in the range of $6-$6.1 billion compared with $5.95-$6.25 billion projected in the previous quarter.
The estimate for adjusted EBITDA is in the band of $660-$685 million, down from $725-$800 million projected in the previous quarter.
Adjusted free cash flow is expected to be in the range of $200-$215 million, down from $225-$300 million estimated in the previous quarter.
Zacks Rank & Key Picks
AXL currently carries a Zacks Rank #5 (Strong Sell).
Some top-ranked players in the auto space are Toyota Motor TM, Honda Motor Co., Ltd. HMC and Modine Manufacturing Company MOD, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.6% and 30.9%, respectively. The EPS estimates for 2023 and 2024 have increased by 45 cents and 40 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for HMC’s 2023 sales and earnings suggests year-over-year improvement of 7.7% and 31%, respectively. The EPS estimates for 2023 and 2024 have moved up by 9 cents and 24 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s 2023 sales and earnings indicates a year-over-year rise of 7.2% and 52.3%, respectively. The EPS estimates for 2023 and 2024 have increased by 9 cents and 5 cents, respectively, in the past seven days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
Modine Manufacturing Company (MOD) : Free Stock Analysis Report
