Stock Monitor: Sypris Solutions Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 29, 2018 / Active-Investors.com has just released a free earnings report on American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) ("AAM"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AXL. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 16, 2018. The engine and automotive products maker reported better than expected results, and also provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2017, AAM's sales soared 82% to $1.73 billion compared to $946.5 million in Q4 2016, reflecting the impact of the acquisition of Metaldyne Performance Group Inc. ("MPG") that was completed on April 06, 2017. The Company's revenue numbers beat analysts' estimates of $1.69 billion.
During Q4 2017, AAM's Non-General Motor sales more than tripled to $1.01 billion compared to $323.0 million in Q4 2016, representing over 58% of total sales in the reported quarter.
For the full fiscal year 2017, AAM's sales increased 58.7% to a record $6.27 billion compared to $3.95 billion in FY16.
During Q4 2017, AAM's selling, general, and administrative expenses (SG&A), including research and development (R&D), were $101 million, or 5.8% of sales, compared to $83 million, or 8.8% of sales, in Q4 2016. The Company's R&D expenses in the reported quarter were $38.5 million compared to $37.5 million in the prior year's same quarter.
For Q4 2017, AAM reported a net income of $106.3 million, or $0.93 per share, compared to $46.9 million, or $0.59 per share, in Q4 2016. Excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, and non-recurring items, and including the tax effect, the Company's adjusted earnings advanced 14.1% to $0.89 per share in the reported quarter versus $0.78 per share in the year earlier comparable quarter. AAM's earnings came in ahead of Wall Street's estimates of $0.76 per share.
For FY17, AAM's net income totaled $337.1 million, or $3.21 per share, compared to $240.7 million, or $3.06 per share, in FY16. The Company's adjusted earnings were $3.75 per share in FY17, up 13.6% compared to $3.30 per share in FY16.
During Q4 2017, AAM's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $295.7 million, or 17.1% of sales, compared to $148.2 million, or 15.7% of sales, in Q4 2016.
During Q4 2017, AAM's Driveline business unit recorded sales of $1.01 billion, which translated to $178.8 million of segment-adjusted EBITDA, compared to sales of $895.2 million and segment-adjusted EBITDA of $123.9 million in Q4 2016. The segment benefited from a strong light truck production and the contribution of significant new business heavily concentrated on crossover vehicles.
For Q4 2017, AAM's Metal Forming business unit recorded sales of $355.1 million, up 158% compared to $137.8 million in Q4 2016, while the segment-adjusted EBITDA surged 155.4% to $61.8 million compared to $24.2 million in Q4 2016.
AAM's Powertrain business unit recorded sales of $272 million and segment-adjusted EBITDA of $42.4 million in Q4 2017. The Company's Casting business unit recorded sales of $224.2 million and segment-adjusted EBITDA of $12.7 million in the reported quarter.
AAM's net cash provided by operating activities was $226.3 million in Q4 2017. The Company's capital expenditure was $198.2 million, and cash payments for restructuring and acquisition-related activity were $22.8 million in the reported quarter.
For Q4 2017, AAM's adjusted free cash flow was $50.9 million compared to $62.8 million in Q4 2016. The Company's adjusted free cash flow was $340.9 million in FY17 compared to $198.6 million in FY16.
AAM ended FY17 with a net leverage ratio of 2.9x. In Q4 2017, the Company prepaid $200 million on its senior note that was due in 2019.
For the full fiscal year 2018, AAM is targeting sales of approximately $7 billion. This sales projection is based on the anticipated launch schedule of programs in AAM's new and incremental business backlog and the assumption that the US Seasonally Adjusted Annual Rate (SAAR) of sales will be in the range of 16.8 million to 17 million light vehicle units in 2018.
AAM is forecasting adjusted EBITDA margin to be in the range of 17.5% to 18.0% of sales, and adjusted free cash flow of approximately 5% of sales in FY18.
Stock Performance Snapshot
March 28, 2018 - At Wednesday's closing bell, American Axle & Manufacturing Holdings' stock fell 3.45%, ending the trading session at $14.83.
Volume traded for the day: 2.10 million shares.
After yesterday's close, American Axle & Manufacturing Holdings' market cap was at $1.68 billion.
Price to Earnings (P/E) ratio was at 4.81.
The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry. This sector was up 0.6% at the end of the session.
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