Why American Axle's Shares Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of American Axle & Manufacturing jumped as much as 13% after the company reported earnings.
So what: First quarter revenue rose slightly, to $755.6 million, and net income was $7.3 million, or $0.23 per share after adjusting for debt refinancing costs. Consensus estimate was for $750 million in revenue, and earnings of $0.16 per share.
Now what: Financial results aren't breaking any records, but they are stable for the time being. That provides a nice opportunity for investors, because shares are only trading at six times forward earnings estimates. I think the stock can move higher just based on value, particularly after this earnings beat.
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The article Why American Axle's Shares Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. 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.