NEW YORK (TheStreet) -- Shares of American Axel Manufacturing Holdings Inc. (AXL) are higher 3.71% to $19.00 in pre-market trading on Friday, after the company released its earnings results for the 2014 first quarter.
The company, which designs, engineers and manufactures driveline and drivetrain systems, components and chassis for trucks and SUVs, reported net earnings increased to $33.6 million, or 44 cents per share, compared to $7.3 million, or 10 cents per share from the year ago quarter.
Gross profit was $121.9 million for the most recent quarter, compared to $104.3 million during the same quarter last year.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates AMERICAN AXLE & MFG HOLDINGS as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:"We rate AMERICAN AXLE & MFG HOLDINGS (AXL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to other companies in the Auto Components industry and the overall market, AMERICAN AXLE & MFG HOLDINGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
- AXL's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues rose by 12.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 472.03% to $120.70 million when compared to the same quarter last year. In addition, AMERICAN AXLE & MFG HOLDINGS has also vastly surpassed the industry average cash flow growth rate of 35.59%.
- Compared to its closing price of one year ago, AXL's share price has jumped by 37.69%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- AMERICAN AXLE & MFG HOLDINGS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, AMERICAN AXLE & MFG HOLDINGS reported lower earnings of $1.24 versus $4.84 in the prior year. This year, the market expects an improvement in earnings ($2.30 versus $1.24).
- You can view the full analysis from the report here: AXL Ratings Report
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV