American Axle & Manufacturing Holdings Beats Estimates But Has a Big Earnings Drop

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American Axle & Manufacturing Holdings (NYS: AXL) reported earnings on May 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), American Axle & Manufacturing Holdings met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.


Margins shrank across the board.

Revenue details
American Axle & Manufacturing Holdings chalked up revenue of $755.6 million. The nine analysts polled by S&P Capital IQ hoped for revenue of $749.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.24. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.16 per share. Non-GAAP EPS of $0.24 for Q1 were 61% lower than the prior-year quarter's $0.61 per share. GAAP EPS of $0.10 for Q1 were 85% lower than the prior-year quarter's $0.68 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 13.8%, 340 basis points worse than the prior-year quarter. Operating margin was 5.9%, 310 basis points worse than the prior-year quarter. Net margin was 1.0%, 580 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $813.0 million. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $3.28 billion. The average EPS estimate is $1.69.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 190 members out of 306 rating the stock outperform, and 116 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give American Axle & Manufacturing Holdings a green thumbs-up, and 28 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Axle & Manufacturing Holdings is outperform, with an average price target of $13.50.

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The article American Axle & Manufacturing Holdings Beats Estimates But Has a Big Earnings Drop originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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