American Axle Beats Q3 Earnings Expectations

American Axle & Manufacturing Holdings, Inc. (AXL) exceeded earnings expectations for the third quarter of 2021, pushing shares of the automotive parts manufacturer up by 2.7% on November 5 to close at $9.82.

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Notably, AXL shares have jumped almost 30% over the past year, with the current market capitalization landing at $1 billion. (See American Axle & Manufacturing Holdings stock charts on TipRanks)

Q3 Performance

Q3 adjusted earnings of $0.15 per share exceeded analysts’ expectations of $0.07 per share. However, it was significantly lower than the adjusted earnings of $1.15 per share reported in the same quarter last year.

Meanwhile, revenues declined 14% year-over-year to $1.21 billion, meeting consensus estimates. The year-over-year decline reflected the negative impact of shortages in semiconductor chip supply.

American Axle Updates FY2021 Outlook

American Axle updated its guidance for FY2021 based on production and launch schedules, as well as the current operating environment. The outlook also reflects the assumption of 13 million units of light vehicle production in North America.

Looking ahead, the company forecasts revenues to range between $5.15 billion and $5.25 billion for fiscal 2021, against the consensus estimate of $5.14 billion. Furthermore, the company expects adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) to be in the range of $830 million to $850 million.

Management Weighs In

American Axle CEO, David C. Dauch, commented, “Despite this uncertain and volatile environment, we remain focused on optimizing our current operations and securing our core business while laying a solid foundation for our electrification future.”

Wall Street’s Take

Wall Street has a Hold consensus rating on the stock based on 1 Buy and 3 Holds. The average American Axle price target of $12.25 implies 24.75% downside potential from current levels.