-=American Axle (AXL) reported earnings on Fri 2 Nov 2018 (b/o)

American Axle misses by $0.27, beats on revs; guides FY18 revs in-line, lowers EBITDA margin on higher launch-related expenses and manufacturing costs

Reports Q3 (Sep) earnings of $0.63 per share, excluding non-recurring items, $0.27 worse than the S&P Capital IQ Consensus of $0.90; revenues rose 5.4% year/year to $1.82 bln vs the $1.78 bln S&P Capital IQ Consensus. In the third quarter of 2018, Adjusted EBITDA was $275.0 million, or 15.1% of sales

Co issues in-line guidancefor FY18, sees FY18 revs of $7.25 bln (from $7.20-7.25 bln) vs. $7.25 bln S&P Capital IQ Consensus. Due to higher launch-related expenses and manufacturing costs in the second half of 2018, AAM is now targeting full year Adjusted EBITDA margin for 2018 in the range of 16.25% to 16.5% (from 17.5-17.75%). As a result of a lower than expected full year Adjusted EBITDA, AAM is now targeting Adjusted free cash flow of ~4% of sales in 2018.