American Axle & Manufacturing (AXL) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release

Company Overview - American Axle & Manufacturing (AXL) is anticipated to report a year-over-year increase in earnings despite lower revenues for the quarter ended December 2024 [1] - The earnings report is scheduled for release on February 14, 2025, and could influence stock movement based on performance relative to expectations [2] Earnings Estimates - The Zacks Consensus Estimate predicts a quarterly loss of $0.08 per share, reflecting an 11.1% year-over-year change [3] - Expected revenues are projected at $1.38 billion, which is a decrease of 5.3% from the same quarter last year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 45.47%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10] - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -15.55% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [7][8] - American Axle's current Zacks Rank is 3, making it challenging to predict an earnings beat conclusively [11] Historical Performance - In the last reported quarter, American Axle exceeded expectations significantly, posting earnings of $0.20 per share against an expected $0.01, resulting in a surprise of +1,900% [12] - The company has beaten consensus EPS estimates in each of the last four quarters [13] Industry Comparison - In contrast, Allison Transmission (ALSN), another player in the Zacks Automotive - Original Equipment industry, is expected to post earnings of $1.93 per share for the same quarter, indicating a year-over-year change of +1.1% [17] - Allison Transmission's revenues are expected to be $791.22 million, up 2.1% from the previous year, with a positive Earnings ESP of 9.33% and a Zacks Rank of 2, suggesting a likely earnings beat [18]