Shares of Magna Worldwide MGA gained 11.7% because the firm reported third-quarter 2024 outcomes. The auto gear supplier reported adjusted earnings of $1.28 per share, which declined from the year-ago quarter’s $1.46 and missed the Zacks Consensus Estimate of $1.48.
Web gross sales declined 3.8% 12 months over 12 months to $10.3 billion and missed the Zacks Consensus Estimate of $10.6 billion.
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Magna Worldwide Inc. Worth, Consensus and EPS Shock
Magna International Inc. price-consensus-eps-surprise-chart | Magna Worldwide Inc. Quote
Segmental Efficiency
The Physique Exteriors & Constructions phase’s revenues have been $4.04 billion, down 4% 12 months over 12 months. This may be attributed to the tip of manufacturing of sure packages, decrease manufacturing on just a few packages, divestitures and buyer value concessions. Revenues additionally lagged the Zacks Consensus Estimate of $4.32 billion. The phase reported an adjusted EBIT of $273 million, down from $358 million recorded within the year-ago interval. The metric additionally missed the Zacks Consensus Estimate of $345 million due to increased manufacturing enter prices internet of buyer recoveries, lowered earnings on decrease gross sales, provide chain premiums and better pre-operating prices.
The Energy & Imaginative and prescient phase’s revenues elevated 2% 12 months over 12 months to $3.84 billion on the launch of recent packages, buyer value will increase, favorable overseas change translation and advantages from acquisitions. The metric additionally surpassed the Zacks Consensus Estimate of $3.83 billion. Segmental adjusted EBIT rose from $221 million to $279 million because of a rise in earnings on increased gross sales. The metric additionally topped the Zacks Consensus Estimate of $228 million.
Revenues from the Seating Techniques phase fell 10% 12 months over 12 months to $1.38 billion and missed the Zacks Consensus Estimate of $1.46 billion because of decrease manufacturing and finish of manufacturing. Segmental adjusted EBIT fell from $70 million to $51 million because of lowered earnings on decrease gross sales. The metric additionally missed the Zacks Consensus Estimate of $54 million.
The Full Autos phase’s revenues decreased 2% 12 months over 12 months to $1.16 billion because of decrease meeting volumes. The metric, nonetheless, beat the Zacks Consensus Estimate of $1.13 billion. The phase reported an adjusted EBIT of $27 million towards an adjusted EBIT lack of $5 million reported within the year-ago interval however outpaced the Zacks Consensus Estimate of $8.98 million.
Financials
Magna had $1.06 billion in money and money equivalents as of Sept. 30, 2024, down from $1.2 billion as of Dec. 31, 2023. As of Sept. 30, 2024, long-term debt was $4.91 billion, up from $4.18 billion as of Dec. 31, 2023.
Within the reported quarter, money supplied from working actions totaled $727 million, down from the year-ago determine of $797 million.
The corporate declared a third-quarter dividend of 47.5 cents per frequent share. The dividend shall be paid on Nov. 29, 2024, to shareholders of report as of Nov. 15, 2024.
Magna Revises 2024 Outlook
Magna has revised its full-year projections. It now expects 2024 revenues within the band of $42.2-$43.2 billion, down from $42.5-$44.1 billion guided earlier. Adjusted EBIT margin is projected within the band of 5.4-5.5% in contrast with the sooner estimate of 5.4-5.8%. Adjusted internet earnings is estimated between $1.45 billion and $1.55 billion, down from the sooner estimate of $1.5-$1.7 billion. Capex is projected within the band of $2.2-$2.3 billion, down from the earlier estimate of $2.3-$2.4 billion.
Zacks Rank & Key Picks
WPRT at present carries a Zacks Rank #5 (Robust Promote).
Some better-ranked shares within the auto house are Dorman Merchandise, Inc. DORM, Tesla, Inc. TSLA and BYD Firm Restricted BYDDY, every sporting a Zacks Rank #1 (Robust Purchase) at current. You may see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DORM’s 2024 gross sales and earnings suggests year-over-year development of three.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, prior to now 30 days.
The Zacks Consensus Estimate for TSLA’s 2024 gross sales suggests year-over-year development of two.85%. EPS estimates for 2024 and 2025 have improved by 22 cents and 18 cents, respectively, prior to now 30 days.
The Zacks Consensus Estimate for BYDDY’s 2024 gross sales and earnings suggests year-over-year development of 25.07% and 31.51%, respectively. EPS estimates for 2024 and 2025 have improved by 35 cents and 39 cents, respectively, prior to now 30 days.
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