Why American Axle, Tenneco, and Cars.com Stocks are Soaring by Double Digits
Automotive companies American Axle & Manufacturing (NYSE: AXL), Tenneco (NYSE: TEN), and Cars.com (NYSE: CARS) are soaring 30%, 19%, and 12% higher, respectively, on Friday morning as better-than-expected earnings results offset a gloomy jobs report.
The U.S. economy lost a record 20.5 million jobs in April, sending the unemployment rate to 14.7%. That's a frightening figure, and quite a bit higher than March's 4.4% mark, but it was lower than the projected 16% jobless rate. The automotive industry has been hit hard by restrictions resulting from COVID-19 restrictions, but investors appear to be optimistic after American Axle, Tenneco, and Cars.com all recently reported solid quarterly results.
American Axle's first-quarter revenue checked in at $1.34 billion, which was ahead of analysts' estimates of $1.31 billion even with COVID-19 negatively impacting sales to the tune of about $169 million. But the bottom-line beat is likely the driving force behind the stock's 30% pop Friday. Adjusted earnings per share checked in at $0.20, well ahead of the $0.08 per share loss analysts had forecast.
Source Fool.com
