American Axle Accelerates Past Forecasts: Sales Surge 5% Amid Optimistic FY24 Outlook
Portfolio Pulse from Nabaparna Bhattacharya
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) reported a Q4 adjusted loss per share of $(0.09), beating estimates of a $(0.19) loss. Q4 sales rose 5% YoY to $1.46 billion, surpassing the $1.42 billion forecast. The company attributes the sales increase to volume and mix, despite the UAW work stoppage. Adjusted EBITDA for Q4 was $169.5 million, up from $157.7 million YoY. However, adjusted free cash flow decreased to $4.5 million from $99.0 million in Q4 2022. For FY24, American Axle targets sales between $6.05 billion and $6.35 billion, with adjusted EBITDA between $685 million and $750 million, expecting North American light vehicle production of about 15.8 million units. The company anticipates a gross new and incremental business backlog of approximately $600 million in future annual sales from 2024 to 2026, with an electrification mix of 50%. AXL shares dropped 1.93% to $8.385.
February 16, 2024 | 5:00 pm
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American Axle reported a smaller than expected Q4 loss and a 5% increase in sales, with a positive outlook for FY24, including a significant portion of new business backlog in electrification.
Despite the short-term price drop, the better-than-expected Q4 results and optimistic FY24 outlook, especially with a significant shift towards electrification, suggest a positive sentiment that could drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100