Share price of
American Axle and Manufacturing Holdings Inc.
) declined 4.7% to close at $17.52 on Aug 1, after the company
reported second-quarter 2014 earnings of 67 cents, which missed the
Zacks Consensus Estimate by 4 cents. Meanwhile, earnings increased
97% year over year from 34 cents. Net income jumped an astounding
102.3% to $52.2 million from $25.8 million reported in the second
quarter of 2013.
The year-over-year upside in profits was driven by strong sales and
increased production volumes of products which support the North
American light vehicle segment.
American Axle & Manufacturing Holdings, Inc
- Earnings Surprise | FindTheBest
Revenues went up 18.4% to $946.9 million from $799.6 million in
the second quarter of 2013. The figure missed the Zacks Consensus
Estimate of $982 million.
American Axle's content-per-vehicle - dollar value of product sales
supporting customers' North American light truck and SUV programs -
increased 5.5% to $1,640 from $1,554 in the year-earlier quarter.
The company's non-General Motors Company (
) sales rose 33.2% to $298.1 million from $223.8 million in the
year-ago quarter. The year-over-year improvement in revenues was
driven by higher sales to support the production of Chrysler's
all-new Jeep Cherokee and heavy-duty Ram full-size pickup trucks
Gross profit improved 21.9% to $149 million or 15.7% of sales in
second-quarter 2014 from $122.2 million or 15.3% of sales in the
year-ago quarter. Meanwhile, operating income surged 41.8% to $87.5
million or 9.2% of sales from $61.7 million or 7.7% of sales a year
American Axle had cash and cash equivalents of $128.9 million as of
Jun 30, 2014, down from $154 million as of Dec 31, 2013. Long-term
debt stood at $1.54 billion as of Jun 30, 2014, down from $1.56
billion as of Dec 31, 2013.
Cash flow from operations in the first half of 2014 came in at
$82.4 million compared with $33.2 million in the same period of
2013. Net capital spending of the company stood at $95.4 million as
against $100.6 million a year ago. Therefore, American Axle used
free cash of $13 million in the period compared with $67.4 million
in the first half of 2013.
American Axle is a leading supplier of driveline systems, modules
and components for the light vehicle market. The company is
poised to benefit from a strong sales environment and product
launches with the new advanced driveline technologies. Also, the
product launches will diversify the company's business and drive
profits along with consistent free cash flow generation. Currently,
American Axle holds a Zacks Rank #3 (Hold).
Better-ranked stocks worth considering in the same industry are
Tower International, Inc. (
) and Magna International Inc. (
). Both the companies sport a Zacks Rank #1 (Strong Buy).
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AMER AXLE & MFG (AXL): Free Stock Analysis
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