Shares of American Axle & Manufacturing Holdings, Inc. (NYSE: AXL) surged 5.02% in intraday trading on Monday, as investors reacted positively to the company's recent second-quarter earnings report and upgraded analyst forecasts.
The automotive parts manufacturer reported revenues of $1.5 billion for Q2, in line with analyst expectations. However, the company significantly outperformed on the bottom line, with earnings per share (EPS) coming in at $0.32, crushing estimates by an impressive 57%. This strong performance has led analysts to revise their outlook for the company upwards.
Following the earnings release, analysts have upgraded their EPS forecasts for American Axle & Manufacturing. For the full year 2025, the consensus EPS estimate now stands at $0.37, representing a 6.9% increase. Revenue projections for 2025 remain steady at $5.83 billion, approximately in line with the last 12 months. Despite the improved earnings outlook, the consensus price target for AXL stock remains unchanged at $5.89 per share.
The market's enthusiastic response to American Axle & Manufacturing's earnings beat and the subsequent analyst upgrades underscores investor confidence in the company's near-term prospects. However, it's worth noting that analysts still expect the company's revenue growth to slow down compared to its historical performance and the broader industry average.