Does American Axle's Blockbuster Q3 Make It a Buy Now?
There's plenty of pessimism among Wall Street and Main Street investors about the state of the U.S. auto industry. While sales are currently near all-time highs annually, we're almost certainly at the peak of the cycle, and that means a slowdown ripple effect for companies such as American Axle Manufacturing (NYSE: AXL) is coming. Such is life in a cyclical industry.
But that doesn't mean all hope is lost for long-term investors. Does American Axle's incredible third quarter prove the point? Let's dig in.
Starting from the top, American Axle (AAM) posted revenue of $1.72 billion during the third quarter, which beat analysts' estimates calling for $1.62 billion. American Axle also beat on the bottom line with adjusted earnings per share checking in at $0.86, well above analysts' estimates of $0.64 per share. Comparing those results to the prior-year quarter reveals some explosive growth: Revenue, net income, and free cash flow jumped 70%, 40%, and 61%, respectively, over the prior year.
Source: Fool.com
American Axle + Mfg Hldgs Stock
With 3 Buy predictions and 2 Sell predictions the community is currently undecided on American Axle + Mfg Hldgs.
With a target price of 9 € there is a hugely positive potential of 63.64% for American Axle + Mfg Hldgs compared to the current price of 5.5 €.
