American Axle (AXL) Tops Q2 EPS by 16c, Beats on Revenues; Reaffirms FY17 Outlook

American Axle (NYSE: AXL) reported Q2 EPS of $0.99, $0.16 better than the analyst estimate of $0.83. Revenue for the quarter came in at $1.76 billion versus the consensus estimate of $1.75 billion.

AAM Confirms Full Year 2017 Financial Outlook AAM confirmed its full year 2017 financial outlook which includes the impact of the MPG acquisition, reflecting the expected financial performance of the acquired entity from April 6, 2017 to December 31, 2017.

• AAM is targeting sales of approximately $6.1 billion in 2017, which excludes MPG sales for the period between January 1, 2017 and April 5, 2017. This sales projection is based on the anticipated launch schedule of programs in AAM's new and incremental business backlog and the assumption that the U.S. Seasonally Adjusted Annual Rate of sales ("SAAR") will be approximately 17 million light vehicle units in 2017.
• AAM is targeting Adjusted EBITDA margin in the range of 17% to 18% of sales in 2017.
• AAM is targeting Adjusted free cash flow of approximately 5% of sales in 2017.
• AAM is targeting full year capital spending of approximately 8% of sales in 2017.
• We have incurred and expect to further incur significant costs and payments related to restructuring and acquisition-related activities as well as significant purchase accounting adjustments and related effects on the income statement during 2017. The impact of these has been excluded from our Adjusted EBITDA margin and Adjusted free cash flow targets.

Second Quarter 2017 Results

• Sales of $1.76 billion
• Net income attributable to AAM of $66.2 million or 3.8% of sales
• Diluted earnings per share of $0.59
• Adjusted earnings per share of $0.99
• Adjusted EBITDA of $325.7 million, or 18.5% of sales
• Net cash provided by operating activities of $150.9 million
• Adjusted free cash flow of $141.6 million

For earnings history and earnings-related data on American Axle (AXL) click here.

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