Core Viewpoint - Magna (MGA) reported quarterly earnings of $1.69 per share, exceeding the Zacks Consensus Estimate of $1.46 per share, and showing an increase from $1.33 per share a year ago, representing an earnings surprise of 15.75% [1] Financial Performance - The company posted revenues of $10.63 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.14%, compared to $10.45 billion in the same quarter last year [2] - Over the last four quarters, Magna has only surpassed consensus EPS estimates once and has topped consensus revenue estimates just once [2] Stock Performance and Outlook - Magna shares have declined approximately 5.1% since the beginning of the year, while the S&P 500 has gained 4% [3] - The future performance of Magna's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.33 on revenues of $10.4 billion, and for the current fiscal year, it is $6.10 on revenues of $42.88 billion [7] - The estimate revisions trend for Magna is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Automotive - Original Equipment industry, to which Magna belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - Magna International Inc. reported a 2% increase in sales to $10.6 billion for Q4 2024, aligning with global light vehicle production growth of 2% [3][6] - The company generated $1.9 billion in cash from operating activities and returned $335 million to shareholders through dividends and share repurchases [3][18] - For 2025, sales are expected to range between $38.6 billion and $40.2 billion, with an anticipated adjusted EBIT margin of 5.3% to 5.8% [3][25] Financial Performance - Q4 2024 diluted earnings per share were $0.71, down from $0.94 in Q4 2023, while adjusted diluted earnings per share increased to $1.69 from $1.33 [10][3] - Net income attributable to Magna for Q4 2024 was $203 million, a decrease from $271 million in Q4 2023 [9][44] - Adjusted EBIT for Q4 2024 rose to $689 million from $558 million in Q4 2023, reflecting operational improvements [7][15] Operational Highlights - The increase in sales was driven by new program launches and higher engineering revenue, despite challenges such as lower production volumes and the impact of UAW labor strikes [6][21] - The company faced a net weakening of foreign currencies against the U.S. dollar, which negatively impacted reported sales by $43 million in Q4 2024 [6][21] - Cash from operations before changes in operating assets and liabilities was $896 million for Q4 2024 [11] Segment Analysis - Sales for Body Exteriors & Structures decreased by 3% to $4.07 billion in Q4 2024, while adjusted EBIT increased by 33% to $371 million [32][33] - Power & Vision segment sales were relatively unchanged at $3.79 billion, with adjusted EBIT slightly increasing to $235 million [33][36] - Seating Systems sales increased by 6% to $1.51 billion, with adjusted EBIT rising by 52% to $67 million [36][40] Future Outlook - For 2025, Magna expects sales to be impacted by foreign currency translation and lower light vehicle production, with a projected adjusted EBIT margin of 5.3% to 5.8% [3][25] - The company anticipates sales growth in 2026, with expected sales between $40.5 billion and $42.6 billion and an adjusted EBIT margin of 6.5% to 7.2% [3][25] - Free cash flow is expected to exceed $1.5 billion by 2026 [3]

Core Viewpoint - Analysts project Magna (MGA) will report quarterly earnings of $1.46 per share, a 9.8% increase year over year, with revenues expected to reach $10.3 billion, reflecting a 1.4% decline from the same quarter last year [1] Earnings Projections - The consensus EPS estimate has been revised downward by 1.5% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Key Metrics Estimates - Analysts estimate 'Sales- Body Exteriors & Structures' at $3.99 billion, a year-over-year decline of 4.4% [5] - 'Sales- Power & Vision' is projected to reach $3.67 billion, indicating a 2.7% decrease year over year [5] - 'Sales- Complete Vehicles' is expected to be $1.41 billion, reflecting a 17% increase year over year [5] - 'Sales- Seating Systems' is estimated at $1.38 billion, a 3.6% decline year over year [6] Adjusted EBIT Estimates - 'Adjusted EBIT- Body Exteriors & Structures' is projected at $303.01 million, up from $280 million year over year [6] - 'Adjusted EBIT- Power & Vision' is expected to be $229.69 million, slightly down from $231 million year over year [6] - 'Adjusted EBIT- Seating Systems' is estimated at $46.15 million, compared to $44 million in the previous year [7] - 'Adjusted EBIT- Complete Vehicles' is projected to be $37.24 million, down from $43 million year over year [7] Stock Performance - Magna's shares have decreased by 3.7% over the past month, contrasting with a 4.2% increase in the Zacks S&P 500 composite [7] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7]

Core Insights - Magna has maintained a long-term strategic partnership with Mercedes-Benz, focusing on innovation across various vehicle components and systems [1][2][8] - The partnership has resulted in the production of over 500,000 off-road vehicles since 1979, showcasing the strength and longevity of their collaboration [2] Partnership and Innovation - The collaboration emphasizes the importance of strong customer partnerships in driving innovation within the automotive industry [2] - Magna's recent production of the eDS Duo electric drive system marks a significant advancement in their partnership, particularly for the new electric model of Mercedes-Benz's iconic off-roader [3][4] Product Development - The eDS Duo features a 2-speed, dual e-motor drive with a power range of up to 240 kW, offering enhanced traction and off-road capabilities [4] - This system includes advanced technologies such as silicon carbide and decoupling technology, which contribute to its high efficiency and performance [4] Company Overview - Magna is recognized as one of the largest automotive suppliers globally, with over 175,000 employees and operations in 28 countries [6] - The company has over 65 years of experience in the automotive sector, positioning it uniquely to advance mobility solutions [6]

Core Insights - Magna has maintained a long-term strategic partnership with Mercedes-Benz, focusing on innovation across various vehicle components and systems [1][2] - The partnership has resulted in the production of over 500,000 off-road vehicles since 1979, showcasing the strength of their collaboration [2] - Magna's recent introduction of the eDS Duo electric drive system marks a significant advancement in their partnership, enhancing the performance and efficiency of Mercedes-Benz's iconic off-roader [3][4] Company Overview - Magna is recognized as one of the largest automotive suppliers globally, with a workforce of over 175,000 employees and operations in 28 countries [6] - The company has over 65 years of experience in the automotive industry, positioning itself as a mobility technology innovator [6] Product Development - The eDS Duo features a 2-speed, dual e-motor drive with a power range of up to 240 kW, offering advanced traction and off-road capabilities [4] - This electric drive system includes innovative technologies such as silicon carbide and decoupling technology, ensuring high efficiency and performance [4][10]

Core Viewpoint - President Trump's announcement of import tariffs on Canada, Mexico, and China has led to significant panic among investors, resulting in a sharp decline in Magna International's stock price [1][2]. Group 1: Impact of Tariffs - The proposed tariffs include a 25% levy on imports from Canada and Mexico, and a 10% tariff on imports from China, which are critical markets for Magna International [1]. - Magna International's stock fell by 11.6% in response to the tariff announcement, reflecting investor concerns about the potential impact on the company's operations [1][2]. - Competitors in the auto parts industry predict that these tariffs could severely disrupt production in North America and lead to massive layoffs [2][4]. Group 2: Financial Performance and Market Dependency - Magna International is one of the largest publicly traded auto parts companies in Canada, with Mexico, Canada, and China being among its top five largest end markets outside the U.S. [3]. - In 2023, these three markets accounted for nearly 34% of Magna's total sales, highlighting the company's dependency on these regions [3]. - The company has experienced a 35% decline in stock value over the past year, exacerbated by a global slowdown in the auto and electric vehicle industries [5]. Group 3: Future Outlook - Although the tariffs have not yet been imposed, the uncertainty surrounding them raises concerns about their potential impact on Magna International [6]. - The company reported flat sales for the nine months ending September 30, 2024, and slightly downgraded its full-year sales guidance to between $42.2 billion and $43.2 billion, compared to $42.8 billion in sales for 2023 [6].

Company Announcement - Magna International Inc. will announce its Q4 and year-end 2024 results on February 14, 2025, at 8:00 AM ET [1] - A live audio webcast will be available for the announcement, with registration details provided [1] Contact Information - Investor Relations contact is Louis Tonelli, Vice-President, with provided email and phone number for inquiries [3] - Webcast contact is Nancy Hansford, Executive Assistant, with provided email and phone number for further assistance [3] Company Overview - Magna International is one of the largest suppliers in the automotive industry, operating as a mobility technology company [3] - The company employs over 175,000 people across 343 manufacturing operations and 107 product development, engineering, and sales centers in 28 countries [3] - With over 65 years of expertise, Magna's interconnected products and complete vehicle expertise position it uniquely in the evolving transportation landscape [3]

Core Insights - Magna International Inc. has announced the date for its Q4 and year-end 2024 results, along with a webcast for the 2025 outlook [1] Group 1: Webcast Details - The live audio webcast is scheduled for February 14, 2025, at 8:00 AM ET [2] - Registration for the webcast can be done through a provided link [2] - Dial-in details for participants include a toll-free number and a toll number, along with a conference ID [2] Group 2: Replay Information - A replay of the call will be available two hours after the live event until February 21, 2025 [3] - The replay can be accessed via specific toll-free and toll dial-in numbers, along with the same conference ID [3] Group 3: Company Overview - Magna International is recognized as one of the largest suppliers in the automotive sector, operating as a mobility technology company [3] - The company employs over 175,000 individuals across 343 manufacturing operations and 107 product development, engineering, and sales centers in 28 countries [3] - With over 65 years of experience, Magna's interconnected products and complete vehicle expertise position it uniquely in the evolving transportation landscape [3]

Dedicated hybrid drive system brings high performance and sustainability to leading Chinese OEMNew 800V solution ensures a smooth and comfortable experience in all driving conditionsScalable DHD Duo design integrates seamlessly across various vehicle models, enhancing energy efficiency and driving versatility AURORA, Ontario, Nov. 19, 2024 (GLOBE NEWSWIRE) -- As OEMs increasingly prioritize hybrid solutions globally within their broader electrification strategies, Magna has secured its first award for a Ded ...

Shares of Magna International (MGA) gained 11.7% since the company reported third-quarter 2024 results. The auto equipment provider 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. Net sales declined 3.8% year over year to $10.3 billion and missed the Zacks Consensus Estimate of $10.6 billion.Stay up-to-date with the quarterly releases: See Zacks Earnings Calendar.Segmental PerformanceThe Body Exteriors & Struct ...