We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Magna (MGA) Q2 Earnings & Sales Miss Mark, Trims '21 View
Read MoreHide Full Article
Magna International (MGA - Free Report) reported second-quarter 2021 adjusted earnings of $1.40 per share, turning around from the loss of $1.71 incurred in the year-ago period. The bottom line, however, missed the Zacks Consensus Estimate of $1.44 per share. For the reported quarter, net sales skyrocketed 114.7% from the prior-year quarter to $9,034 million but fell short of the consensus mark of $9,082 million.
Magna International Inc. Price, Consensus and EPS Surprise
The Body Exteriors & Structures segment’s revenues for the reported quarter were $3,647 million, jumping 125% year over year on thanks to the launch of new models, forex gains and higher global light vehicle production. Consequently, the segment reported adjusted EBIT of $227 million, reversing the year-ago period’s loss of $315 million amid cost savings, productivity improvements and higher sales.
For the June-end quarter, the Power & Vision segment revenues soared to $2,881 million from the prior-year figure of $1,298 million. Launch of programs during or subsequent to second-quarter 2020, increase in light vehicle production (LVP) and net strengthening of foreign currencies against the U.S. dollar boosted the unit’s sales. Cost-cut efforts and higher sales resulted in segmental EBIT of $203 million, versus loss of $226 million incurred in the comparable year-ago period.
Revenues in the Seating Systems segment surged 123% year over year to $1,166 million for the reported quarter due to the launch of new programs subsequent to second-quarter 2020, higher LVP and favorable foreign currency translations. The segment reported pretax profit of $26 million, against a loss of $84 million in the corresponding quarter of 2020.
For the April-June period, the Complete Vehicles segment’s revenues grew 60% year over year to $1,490 million amid higher assembly volumes and forex gains. Adjusted EBIT soared 80% year over year to $79 million on the back high sales and cost-containment efforts.
Financials & Updated Guidance
Magna — whose peers include American Axle & Manufacturing (AXL - Free Report) , Adient (ADNT - Free Report) and Meritor — had $3,426 million cash and cash equivalents as of Jun 30, 2021. It had a long-term debt of $3,941 million. For the reported quarter, cash provided from operating activities totaled $528 million. During the quarter under review, Magna returned $226 million to shareholders via dividends ($127 million) and stock buybacks ($99 million).
In the light of global microchip concerns, Magna has trimmed its 2021 outlook. It now expects full-year 2021 revenues in the band of $38-$39.5 billion, down from the previous view of $40.2-$41.8 billion. Adjusted EBIT margin is anticipated to be 7-7.4% versus the prior guided range of 7.2-7.6%. The Zacks Rank #3 (Hold) company envisions capital spending of $1.6 billion in 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Magna (MGA) Q2 Earnings & Sales Miss Mark, Trims '21 View
Magna International (MGA - Free Report) reported second-quarter 2021 adjusted earnings of $1.40 per share, turning around from the loss of $1.71 incurred in the year-ago period. The bottom line, however, missed the Zacks Consensus Estimate of $1.44 per share. For the reported quarter, net sales skyrocketed 114.7% from the prior-year quarter to $9,034 million but fell short of the consensus mark of $9,082 million.
Magna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote
Segmental Performances
The Body Exteriors & Structures segment’s revenues for the reported quarter were $3,647 million, jumping 125% year over year on thanks to the launch of new models, forex gains and higher global light vehicle production. Consequently, the segment reported adjusted EBIT of $227 million, reversing the year-ago period’s loss of $315 million amid cost savings, productivity improvements and higher sales.
For the June-end quarter, the Power & Vision segment revenues soared to $2,881 million from the prior-year figure of $1,298 million. Launch of programs during or subsequent to second-quarter 2020, increase in light vehicle production (LVP) and net strengthening of foreign currencies against the U.S. dollar boosted the unit’s sales. Cost-cut efforts and higher sales resulted in segmental EBIT of $203 million, versus loss of $226 million incurred in the comparable year-ago period.
Revenues in the Seating Systems segment surged 123% year over year to $1,166 million for the reported quarter due to the launch of new programs subsequent to second-quarter 2020, higher LVP and favorable foreign currency translations. The segment reported pretax profit of $26 million, against a loss of $84 million in the corresponding quarter of 2020.
For the April-June period, the Complete Vehicles segment’s revenues grew 60% year over year to $1,490 million amid higher assembly volumes and forex gains. Adjusted EBIT soared 80% year over year to $79 million on the back high sales and cost-containment efforts.
Financials & Updated Guidance
Magna — whose peers include American Axle & Manufacturing (AXL - Free Report) , Adient (ADNT - Free Report) and Meritor — had $3,426 million cash and cash equivalents as of Jun 30, 2021. It had a long-term debt of $3,941 million. For the reported quarter, cash provided from operating activities totaled $528 million. During the quarter under review, Magna returned $226 million to shareholders via dividends ($127 million) and stock buybacks ($99 million).
In the light of global microchip concerns, Magna has trimmed its 2021 outlook. It now expects full-year 2021 revenues in the band of $38-$39.5 billion, down from the previous view of $40.2-$41.8 billion. Adjusted EBIT margin is anticipated to be 7-7.4% versus the prior guided range of 7.2-7.6%. The Zacks Rank #3 (Hold) company envisions capital spending of $1.6 billion in 2021. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.