Yahoo Finance Magna (MGA) Q1 Earnings & Revenues Beat, Guidance Raised
Magna International MGA reported first-quarter 2023 adjusted earnings of $1.11 per share, which slumped 13% on a year-over-year basis. The bottom line, however, surpassed the Zacks Consensus Estimate of 95 cents a share.
Better-than-expected revenues in Body Exteriors & Structures, Seating Systems and Complete Vehicles segments led to the outperformance. In the reported quarter, net sales increased 10.7% from the prior-year quarter to $10,673 million, surpassing the consensus mark of $10,117 million.
Adjusted EBIT of $437 million in the quarter fell 13.8% from the first quarter of 2022, largely attributable to higher costs of net engineering and production and the operating inefficiencies at a facility in Europe.
Magna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote
Segmental Performance
The Body Exteriors & Structures segment’s revenues in the reported quarter were $4,439 million, rising 8.9% year over year due to higher global light vehicle production and customer price increases. The figure also surpassed the consensus mark of $4,195 million. The segment reported an adjusted EBIT of $270 million, up 18% from the year-ago period and outpacing the consensus mark of $217 million.
In the reported quarter, the Power & Vision segment revenues increased 9.1% to $3,323 million from the prior-year figure, topping the consensus mark of $3,130 million. The segmental EBIT of $84 million registered a 45.5% decrease year over year. The metric also lagged the consensus mark of $134 million.
Revenues from the Seating Systems segment increased 8% year over year to $1,486 million in the reported quarter, also topping the consensus mark of $1,421 million. The segment reported an adjusted EBIT of $36 million, declining 26.5% from the corresponding quarter of 2021 but outpacing the consensus estimate of $23.97 million.
The Complete Vehicles segment’s revenues increased 27.5% year over year to $1,626 million, beating the consensus mark of $1,277 million. Adjusted EBIT was up 4% from the year-ago period. The metric came in at $52 million, surpassing the Zacks Consensus Estimate of $36.33 million.
Financials
Magna had $2,429 million in cash and cash equivalents as of Mar 31, 2023, up from $1,234 million in 2022-end. Long-term debt, as of Mar 31, 2023, was $5,168 million, up from $3,501 million in 2022-end. In the reported quarter, cash provided from operating activities totaled $227 million, down from the year-ago figure of $180 million.
During the quarter under review, Magna returned $132.1 million to shareholders ($132 million in dividends and $0.1 million in stock buyback). The company declared a first-quarter dividend of 46 cents per common share, the same as the prior payout. The dividend will be paid on Jun 2, 2023, to shareholders on record as of the close of business on May 19, 2023.
Revised Guidance
Magna expects full-year 2023 revenues in the band of $40.2-$41.8 billion, up from the previous guidance of $39.6-$41.2 billion. For 2025, revenue is expected in the range of $44.7-$47.2 billion, the same as the previous guidance. Adjusted EBIT margin for 2023 is forecast in the range of 4.7-5.1%, up from the previous guidance of 4.1-5.1%. For 2025, Adjusted EBIT margin is expected to be in the range of 6.7-7.8%, same as the previous guidance. Capital spending and net income attributable to Magna are expected to be $2.4 billion and between $1.3 and $1.5 billion, up from the previously guided range of $1.1 and $1.4 billion for FY2023.
Zacks Rank & Key Picks
MGA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few top-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, BYD Company Limited BYDDY and Mercedes-Benz Group AG MBGAF, all of which sport a Zacks Rank #1.
Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 7.4%, respectively.
BYD is engaged in the research, development, manufacture and distribution of automobiles, secondary rechargeable batteries and mobile phone components. The Zacks Consensus Estimate for BYDDY’s 2023 sales implies year-over-year growth of around 209.6%.
Mercedes-Benz develops, manufactures and sells passenger cars, including premium and luxury vehicles. The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 6%.
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Magna International Inc. (MGA) : Free Stock Analysis Report
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