Why Magna (MGA) Could Beat Earnings Estimates Again

Core Viewpoint - Magna (MGA) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by a strong earnings history and positive analyst sentiment [1]. Earnings Performance - For the last reported quarter, Magna achieved earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, resulting in a surprise of 7.26% [2]. - In the previous quarter, Magna's earnings were $1.44 per share against an expected $1.19 per share, delivering a surprise of 21.01% [2]. Analyst Sentiment - Recent estimates for Magna have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a favorable outlook for earnings performance [5]. - The current Earnings ESP for Magna is +3.87%, suggesting that analysts are optimistic about the company's near-term earnings potential [8]. Zacks Rank and Predictive Power - Magna holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, indicates a high likelihood of another earnings beat [8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [6].