DETROIT - American Axle (NYSE:AXL) & Manufacturing Holdings, Inc. (NYSE: AXL) reported a significant earnings beat for the first quarter of 2024, with adjusted earnings per share (EPS) coming in at $0.18, well above the analyst consensus of $0.02.
The automotive supplier's revenue also surpassed expectations, reaching $1.61 billion against the forecasted $1.53 billion. The company's stock saw a modest increase of +1% following the announcement, reflecting investor satisfaction with the company's performance.
The company's sales rose to $1.61 billion in the first quarter, up from $1.49 billion in the same period last year, marking an 8% increase. The improvement was attributed to better-than-expected volume and mix, as well as sequential improvement in AAM's overall performance. Net income for the quarter was reported at $20.5 million, or $0.17 per share, a substantial turnaround from a net loss of -$5.1 million, or -$0.04 per share, in the first quarter of 2023. Adjusted EBITDA for the quarter was $205.6 million, or 12.8% of sales, compared to $175.4 million, or 11.7% of sales, in the prior year.
AAM's Chairman and Chief Executive Officer, David C. Dauch, expressed confidence in the company's full-year guidance, stating, "AAM is off to a good start in 2024, posting solid first quarter financial performance driven by better-than-expected volume and mix and sequential improvement in AAM's overall performance."
For the full year 2024, American Axle's financial outlook remains unchanged, with the company targeting sales in the range of $6.05 - $6.35 billion. The midpoint of this guidance range, $6.2 billion, aligns with the analyst consensus. The company is also aiming for adjusted EBITDA between $685 - $750 million and adjusted free cash flow in the range of $200 - $240 million, assuming capital spending of about 4.0% - 4.5% of sales.
These targets are based on projections including North American light vehicle production of approximately 15.8 million units and AAM's production estimates of key programs they support, along with current customer launch schedules and the operating environment.
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