American Axle & Manufacturing (AXL) Reports Q4 Loss, Misses Revenue Estimates

Core Insights - American Axle & Manufacturing reported a quarterly loss of $0.06 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and an improvement from a loss of $0.09 per share a year ago, indicating a 25% earnings surprise [1] - The company posted revenues of $1.38 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.30% and down from $1.46 billion year-over-year [2] - American Axle shares have declined approximately 18.5% since the beginning of the year, contrasting with a 4% gain in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $1.4 billion, and for the current fiscal year, it is $0.52 on revenues of $5.82 billion [7] - The estimate revisions trend for American Axle is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which American Axle belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The performance of American Axle may be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5]