Magna Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Core Insights - Magna International (MGA) reported fourth-quarter 2024 adjusted earnings of $1.69 per share, an increase from $1.33 in the same quarter last year, and exceeded the Zacks Consensus Estimate of $1.46 [1] - Net sales rose 2% year over year to $10.6 billion, surpassing the Zacks Consensus Estimate of $10.3 billion [1] Segmental Performance - The Body Exteriors & Structures segment generated revenues of $4.07 billion, down 3% year over year, attributed to the end of certain programs and customer price concessions, but exceeded the Zacks Consensus Estimate of $3.99 billion. Adjusted EBIT increased to $371 million from $280 million, surpassing the estimate of $303 million [2] - The Power & Vision segment's revenues remained flat at $3.79 billion, surpassing the Zacks Consensus Estimate of $3.67 billion. Adjusted EBIT rose slightly from $231 million to $235 million, exceeding the estimate of $230 million [3] - Revenues from the Seating Systems segment increased by 6% year over year to $1.51 billion, exceeding the Zacks Consensus Estimate of $1.38 billion. Adjusted EBIT rose from $44 million to $67 million, surpassing the estimate of $46.15 million [4] - The Complete Vehicles segment's revenues increased by 17% year over year to $1.402 billion, although it missed the Zacks Consensus Estimate of $1.405 billion. Adjusted EBIT rose to $56 million from $43 million, exceeding the estimate of $37.24 million [5] Financials - As of December 31, 2024, Magna had $1.25 billion in cash and cash equivalents, up from $1.2 billion a year earlier. Long-term debt decreased to $4.13 billion from $4.18 billion. Cash provided from operating activities totaled $1.91 billion, an increase from $1.58 billion year over year [6] Dividend Announcement - The company increased its quarterly dividend by 2% to 48.50 cents per common share, marking the 15th consecutive year of fourth-quarter increases, with payment scheduled for March 14, 2025 [7] 2025 Outlook - Magna expects 2025 revenues to be in the range of $38.6 billion to $40.2 billion, down from $42.8 billion in 2024. Adjusted EBIT margin is projected between 5.3% and 5.8%, and adjusted net income is estimated to be between $1.3 billion and $1.5 billion, compared to $1.55 billion in 2024. Capital expenditures are estimated at $1.8 billion [8]