American Axle & Manufacturing' Q4 Bottom-Line Lags Consensus; Expands Electrification Business Mix
American Axle & Manufacturing Holdings Inc (NYSE: AXL) reported fourth-quarter FY22 sales growth of 13% year-on-year to $1.393 billion, marginally beating the consensus of $1.390 billion.
The company's Q4 sales were favorably impacted by the Tekfor acquisition as well as volume and mix.
Adjusted EPS of $(0.07) missed the analyst consensus of $0.01.
Gross profit rose 19.4% Y/Y to $167.2 million, with the margin expanding 70 basis points to 12%.
Selling, general and administrative expenses increased 14.2% Y/Y to $88.5 million.
Operating margin was 3.8%, and operating income for the quarter rose 65.4% to $53.6 million.
Cash provided by operating activities during the quarter totaled $148.5 million versus $102.4 million in the prior year.
The company held $511.5 million in cash and equivalents as of Dec. 31, 2022.
Chairman and CEO David C. Dauch said, "In the pivot to electrification, AAM continues to bring the future faster with sophisticated industry-leading electric drive technology resulting in an expanding electrification business mix within our $725 million new business backlog."
Outlook: American Axle sees FY23 sales of $5.95 billion - $6.25 billion versus the consensus of $5.98 billion.
The company expects FY23 adjusted EBITDA of $725 million - $800 million.
Price Action: AXL shares are trading lower by 9.40% at $9.10 on the last check Friday.
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This article American Axle & Manufacturing' Q4 Bottom-Line Lags Consensus; Expands Electrification Business Mix originally appeared on Benzinga.com
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