American Axle (AXL) Tops Q4 EPS by 23c, Revenues Beat; Offers FY21 Revenue Mid-Point Guidance Below Consensus

American Axle (NYSE: AXL) reported Q4 EPS of $0.51, $0.23 better than the analyst estimate of $0.28. Revenue for the quarter came in at $1.44 billion versus the consensus estimate of $1.36 billion.

Fourth Quarter 2020 Results

• Sales of $1.44 billion
• Net income attributable to AAM of $36.0 million, or 2.5% of sales
• Adjusted EBITDA of $261.5 million, or 18.2% of sales
• Diluted earnings per share of $0.30; Adjusted earnings per share of $0.51
• Net cash provided by operating activities of $208.3 million; Adjusted free cash flow of $172.7 million
• Prepaid over $100 million of Term Loans during the quarter

"AAM delivered solid financial results and free cash flow performance in 2020 as we successfully managed our cost structure while benefiting from the production recovery during the second half of this year," said AAM's Chairman and Chief Executive Officer, David C. Dauch. "While last year was certainly challenging, we look forward to a better and brighter year in 2021 which includes launching a number of electrification programs to support our customers, generating strong financial metrics through operational excellence and investing in next generation propulsion technologies."

GUIDANCE:

American Axle sees FY2021 revenue of $5.3-5.5 billion, versus the consensus of $5.49 billion.

AAM's full year 2021 financial targets are as follows:

• AAM is targeting sales in the range of $5.3 - $5.5 billion
• AAM is targeting Adjusted EBITDA in the range of $850 - $925 million
• AAM is targeting Adjusted free cash flow in the range $300 - $400 million; this target assumes capital spending of approximately 4.5% of sales

These targets are based on the following industry production assumptions for 2021:

• North American light vehicle production in the range of 15.5 - 16 million units
• European light vehicle production of approximately 19 million units
• China light vehicle production of approximately 25 million units

AAM's full year 2021 financial targets are based on current customer production and launch schedules.

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

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