American Axle & Manufacturing (AXL 4.83%)a company that literally supports the auto industry, reported encouraging quarterly results on Friday morning. Investors then drove the stock higher throughout the day, closing nearly 5% higher. This was an outlier as the S&P500 The increase in the index was much more modest at 0.5%.

A convincing double beat

In the second quarter, American Axle reported revenue of $1.63 billion, which was slightly higher than the $1.57 billion it generated in the same period in 2023. Net income under generally accepted accounting principles (GAAP) took quite a leap, doubling to reach more than $18 million from the year-ago profit of $8 million. On a non-GAAP basis (adjusted), the specialty auto components maker earned $0.19 per share.

With these results, American Axle easily exceeded expectations for both revenue and profit. On average, analysts who follow the company’s stock had expected revenue of $1.59 billion and adjusted net income of just $0.11 per share.

In its earnings release, American Axle CEO David Dauch quoted him as saying that he attributed the growth in key fundamentals to “positive contributions from volume and mix as well as continued operating performance.”

Annual targets adjusted

American Axle has adjusted some of its full-year 2024 financial targets. The company now expects its revenue to be between $6.1 billion and $6.3 billion, up from the company’s previous guidance of $6.05 billion to $6.35 billion. Adjusted earnings before interest, taxes, depreciation and amortization were also revised; management expects this to be between $705 million and $755 million, up from the previous range of $685 million to $750 million. The company did not provide guidance for net income.