Magna (MGA) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Magna (MGA) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Magna is expected to report quarterly earnings of $1.19 per share, reflecting a year-over-year decrease of 11.9% [3] - Revenue projections stand at $10.41 billion, down 5% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 3.13% higher in the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +5.04% suggests analysts have recently become more optimistic about Magna's earnings prospects [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Magna currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Magna's expected earnings were $0.90 per share, but the actual earnings were $0.78, resulting in a surprise of -13.33% [13] - Over the past four quarters, Magna has only beaten consensus EPS estimates once [14] Industry Comparison - Ferrari (RACE), another player in the automotive industry, is expected to report earnings of $2.57 per share, showing a year-over-year increase of 4.5% [18] - Ferrari's revenue is projected at $2.04 billion, up 10.5% from the previous year, with an Earnings ESP of +2.53% and a Zacks Rank of 1, indicating a strong likelihood of beating estimates [19]