Don't Overlook American Axle (AXL) International Revenue Trends While Assessing the Stock

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Have you looked into how American Axle & Manufacturing (AXL) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this maker of auto parts, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

Our review of AXL's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

The company's total revenue for the quarter amounted to $1.5 billion, marking a decrease of 3% from the year-ago quarter. We will next turn our attention to dissecting AXL's international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in AXL's International Revenues

During the quarter, Europe contributed $218.7 million in revenue, making up 14.53% of the total revenue. When compared to the consensus estimate of $197.9 million, this meant a surprise of +10.51%. Looking back, Europe contributed $233.6 million, or 14.31%, in the previous quarter, and $233.1 million, or 15.02%, in the same quarter of the previous year.

Of the total revenue, $155.4 million came from Asia during the last fiscal quarter, accounting for 10.33%. This represented a surprise of +8.5% as analysts had expected the region to contribute $143.23 million to the total revenue. In comparison, the region contributed $149.1 million, or 9.13%, and $146.8 million, or 9.46%, to total revenue in the previous and year-ago quarters, respectively.

South America accounted for 3.04% of the company's total revenue during the quarter, translating to $45.8 million. Revenues from this region represented a surprise of -0.22%, with Wall Street analysts collectively expecting $45.9 million. When compared to the preceding quarter and the same quarter in the previous year, South America contributed $42.7 million (2.62%) and $50 million (3.22%) to the total revenue, respectively.

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