American Axle & Manufacturing (NYSE:DCH) Trading 11.1% Higher on Earnings Beat

Key Points

• Shares jumped 11.1% after American Axle reported an EPS of $0.34 versus a consensus of ($0.04), and revenue rose 68.6% year-over-year.
• Analyst sentiment is mixed: MarketBeat shows a consensus rating of "Hold" with a consensus target of $12, while individual ratings range from Buy to Sell and price targets span roughly $7 to $17.
• Fundamentals remain uneven — the company has high leverage (debt-to-equity 6.31), a negative net margin and negative P/E, but healthy liquidity ratios (quick 2.57, current 2.95).

Shares of American Axle & Manufacturing Holdings, Inc. (NYSE:DCH - Get Free Report) shot up 11.1% during trading on Friday following a better than expected earnings announcement. The company traded as high as $6.37 and last traded at $6.4220. 2,978,294 shares were traded during trading, a decline of 51% from the average session volume of 6,037,094 shares. The stock had previously closed at $5.78.

The company reported $0.34 EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.38. American Axle & Manufacturing had a negative net margin of 0.34% and a positive return on equity of 10.00%. The business's revenue for the quarter was up 68.6% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the stock. BWS Financial reissued a "buy" rating and set a $17.00 target price on shares of American Axle & Manufacturing in a report on Tuesday, April 21st. Zacks Research raised American Axle & Manufacturing from a "strong sell" rating to a "hold" rating in a research note on Friday, March 6th. Weiss Ratings initiated coverage on American Axle & Manufacturing in a report on Wednesday, March 11th. They set a "sell (d)" rating on the stock. TD Cowen cut their price target on shares of American Axle & Manufacturing from $8.00 to $7.00 and set a "hold" rating for the company in a report on Wednesday, April 15th. Finally, Wall Street Zen lowered shares of American Axle & Manufacturing from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $12.00.

American Axle & Manufacturing Stock Performance

The company has a quick ratio of 2.57, a current ratio of 2.95 and a debt-to-equity ratio of 6.31. The stock has a market cap of $1.55 billion, a P/E ratio of -35.69, a PEG ratio of 0.63 and a beta of 1.52.

About American Axle & Manufacturing

American Axle & Manufacturing is a U.S.-based designer, engineer and manufacturer of driveline and drivetrain systems and components for the automotive and light- and heavy-vehicle markets. The company produces a range of mechanical and electromechanical products including axles, driveshafts, differential systems, halfshafts, transmission components, and related sealing and suspension parts. Its product portfolio serves passenger cars, light trucks, commercial vehicles and off-highway applications.

Beyond component manufacturing, the company provides integrated engineering services such as product development, testing and system integration to help vehicle manufacturers meet performance, weight and fuel-economy targets.

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