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American Axle stock surges 9% on Q3 earnings beat

EditorRachael Rajan
Published 11/08/2024, 09:09 AM
AXL
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DETROIT - American Axle & Manufacturing (NYSE:AXL) Holdings, Inc. (NYSE: AXL) saw its stock jump 9% Friday after reporting third quarter earnings that significantly beat analyst expectations, despite a slight miss on revenue.

The auto parts supplier posted adjusted earnings per share of $0.20, handily topping the analyst consensus estimate of -$0.05. Revenue came in at $1.50 billion, just shy of the $1.51 billion analysts were expecting.

"AAM delivered solid third quarter financial performance driven by productivity and operating efficiencies," said AAM's Chairman and Chief Executive Officer, David C. Dauch.

The company's net income for Q3 was $10.0 million, or $0.08 per share, compared to a net loss of $17.4 million, or -$0.15 per share, in the same quarter last year. Adjusted EBITDA rose to $174.4 million, or 11.6% of sales, up from $156.8 million, or 10.1% of sales, in Q3 2023.

While sales declined slightly YoY from $1.55 billion, AAM attributed this to lower volumes on certain platforms. However, improved profitability metrics suggest the company was able to boost efficiency and margins.

Looking ahead, AAM narrowed its full-year 2024 guidance ranges. The company now expects sales of $6.1-$6.15 billion, adjusted EBITDA of $715-$745 million, and adjusted free cash flow of $200-$220 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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