AMERICAN AXLE & MANUFACTURING Reports FY2023 Q2 Earnings on August 4, 2023
August 7, 2023
🌥️Earnings Overview
On August 4 2023, AMERICAN AXLE & MANUFACTURING ($NYSE:AXL) reported their fiscal year 2023 second quarter earnings results. Despite a 9.2% year-over-year increase in total revenue to USD 1570.7 million as of June 30 2023, net income for the quarter decreased by 65.1% to USD 8.0 million.
Market Price
At market open, the stock opened at $9.4 but by the end of the day had plunged 10.9% to close the trading session at $8.2. This was a significant drop from the previous closing of $9.2, representing a decrease in value. The company’s financials revealed a significant decrease in revenue and profits, which put pressure on its stock price. Investors were disappointed with the weak performance and took their money out of the stock quickly.
This led to a heavy sell-off, pushing down the stock price. Going forward, investors will be watching AMERICAN AXLE & MANUFACTURING’s future performance carefully. The company must take steps to address the weak fundamentals and deliver better results in order to regain investor confidence and push its stock price back up. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AXL. More…
| Total Revenues | Net Income | Net Margin |
| 5.99k | 41.5 | 1.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AXL. More…
| Operations | Investing | Financing |
| 398.6 | -170.7 | -217.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AXL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.51k | 4.86k | 5.51 |
Key Ratios Snapshot
Some of the financial key ratios for AXL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | 36.1% | 3.9% |
| FCF Margin | ROE | ROA |
| 3.4% | 23.2% | 2.7% |
Analysis
At GoodWhale, we have conducted an analysis of AMERICAN AXLE & MANUFACTURING to examine its health. Our results show that the investment is rated as medium risk in terms of financial and business risk areas. Our analysis has identified two risk warnings in the income sheet and balance sheet. To view the full details of these warnings, register on goodwhale.com. This will allow you to view the full report and make a more informed decision when considering AMERICAN AXLE & MANUFACTURING as an investment. More…
Peers
It operates in four segments: Driveline, Metal Formed Products, Castings and Forgings, and Other. American Axle & Mfg Holdings Inc has several competitors, such as Rane Holdings Ltd, HGears AG, and UCAL Fuel Systems Ltd, all of which are engaged in similar areas of business.
– Rane Holdings Ltd ($BSE:505800)
Rane Holdings Ltd is a leading manufacturer and supplier of automotive components and systems, with a presence in the Indian, US, and European markets. The company has a market cap of 12.66B as of 2023, making it one of the largest players in the automotive industry. Its Return on Equity (ROE) is 10.29%, which indicates that the company is efficiently utilizing its equity to generate profits. The company has been able to maintain a steady growth rate over the years and is well poised to capitalize on the growing demand for automotive components.
– HGears AG ($BER:HGEA)
HGears AG is a global provider of high-quality gear drive components and systems for automotive, industrial, and agricultural applications. The company has a market cap of 83.2 million as of 2023, indicating that it is a relatively small and niche player in the industry. Its Return on Equity (ROE) of 2.74% indicates that the company is generating modest returns on its shareholders’ investments. HGears is committed to providing reliable, safe, and cost-effective solutions to its customers and has been able to maintain a steady growth rate over the years.
– UCAL Fuel Systems Ltd ($BSE:500464)
UCAL Fuel Systems Ltd is a leading manufacturer of automotive fuel systems, with a global presence across five continents. The company’s market cap is 2.77 billion as of 2023, reflecting its position as a major player in the automotive fuel systems industry. Additionally, UCAL Fuel Systems Ltd has achieved an impressive Return on Equity (ROE) of 7.9%, which is an indication of the firm’s strong performance and profitability. This high ROE shows that the company has been able to effectively utilize its equity base to generate high returns for its shareholders.
Summary
American Axle & Manufacturing reported their FY2023 Q2 earnings results with a total revenue increase of 9.2%, yet net income decreased by 65.1% over the same period last year. This news saw the stock price dip on the same day. From an investor’s perspective, the company’s revenue growth is a positive sign, however the drop in net income requires further scrutiny as to why this occurred. Potential investors should focus on exploring the reasons for this decline, and any other risks associated with investing in this company before deciding to invest.
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