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Magna International (MGA) Beats on Q2 Earnings & Revenues
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Magna International Inc. (MGA - Free Report) reported second-quarter 2017 earnings per share of $1.48, surpassing the Zacks Consensus Estimate by a penny. Earnings also improved 5% from $1.41 recorded in the second quarter of 2016.
Revenues increased 3% year over year and reached all-time quarterly record of $9.68 billion. Revenues also surpassed the Zacks Consensus Estimate of $9.43 billion.
The company reported a decrease in adjusted EBIT to $776 million, from the year-ago figure of $789 million.
Segment Details
Revenues at the External Production segment (comprising North America, Europe, Asia, and Rest of World or ROW units) rose 2% year over year to $8.17 billion in the reported quarter.
Sales in North America climbed 2% to $5 billion. Revenues from Europe fell 1% year over year to $2.46 billion. Revenues from Asia jumped 16% to $580 million. Revenues from ROW rose 14% to $127 million.
Revenues at the Complete Vehicle Assembly segment totaled $743 million, increasing 14% from $652 million a year ago.
Revenues from the Tooling, Engineering & Other segment decreased 3% to $772 million in the quarter under review.
Financials
Magna International had $666 million of cash and cash equivalents as of Jun 30, 2017 compared with $974 million as of Dec 31, 2016. The company had long-term debt of $2.43 billion as of Jun 30, 2017, up from Dec 31, 2016 figure of s$2.39 billion.
In second-quarter 2017, Magna International’s cash flow from operations was $557 million.
Capital Deployment
The board of directors of the company announced a quarterly dividend of 27.5 cents for the second quarter. This dividend is payable on Sep 15, 2017, to shareholders of record as on Sep 1, 2017.
In the second quarter, Magna International repurchased 8.5 million shares for $383 million and paid a dividend of $101 million.
Outlook
For 2017, Magna International projects revenues from the Vehicle Production segment in the range of $31.5–$32.8 billion, up from the prior guidance of $30.8–$32.1 billion. Meanwhile, Complete Vehicle Assembly sales are projected in the range of $2.8–$3.1 billion, up from the previous guidance of $2.7–$3 billion.
Thus for 2017, the company expects total revenue within $37.7–$39.4 billion, higher than the prior guidance of $36.6–$38.3 billion. Income tax rate is projected around 25%. Capital expenditures are anticipated in the range of $1.9–$2 billion.
Magna International, based in Aurora, Canada, is a leading manufacturer and supplier of automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, apart from engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks.
Magna International currently carries a Zacks Rank #3 (Hold).
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Magna International (MGA) Beats on Q2 Earnings & Revenues
Magna International Inc. (MGA - Free Report) reported second-quarter 2017 earnings per share of $1.48, surpassing the Zacks Consensus Estimate by a penny. Earnings also improved 5% from $1.41 recorded in the second quarter of 2016.
Revenues increased 3% year over year and reached all-time quarterly record of $9.68 billion. Revenues also surpassed the Zacks Consensus Estimate of $9.43 billion.
The company reported a decrease in adjusted EBIT to $776 million, from the year-ago figure of $789 million.
Segment Details
Revenues at the External Production segment (comprising North America, Europe, Asia, and Rest of World or ROW units) rose 2% year over year to $8.17 billion in the reported quarter.
Sales in North America climbed 2% to $5 billion. Revenues from Europe fell 1% year over year to $2.46 billion. Revenues from Asia jumped 16% to $580 million. Revenues from ROW rose 14% to $127 million.
Revenues at the Complete Vehicle Assembly segment totaled $743 million, increasing 14% from $652 million a year ago.
Revenues from the Tooling, Engineering & Other segment decreased 3% to $772 million in the quarter under review.
Financials
Magna International had $666 million of cash and cash equivalents as of Jun 30, 2017 compared with $974 million as of Dec 31, 2016. The company had long-term debt of $2.43 billion as of Jun 30, 2017, up from Dec 31, 2016 figure of s$2.39 billion.
In second-quarter 2017, Magna International’s cash flow from operations was $557 million.
Capital Deployment
The board of directors of the company announced a quarterly dividend of 27.5 cents for the second quarter. This dividend is payable on Sep 15, 2017, to shareholders of record as on Sep 1, 2017.
In the second quarter, Magna International repurchased 8.5 million shares for $383 million and paid a dividend of $101 million.
Outlook
For 2017, Magna International projects revenues from the Vehicle Production segment in the range of $31.5–$32.8 billion, up from the prior guidance of $30.8–$32.1 billion. Meanwhile, Complete Vehicle Assembly sales are projected in the range of $2.8–$3.1 billion, up from the previous guidance of $2.7–$3 billion.
Thus for 2017, the company expects total revenue within $37.7–$39.4 billion, higher than the prior guidance of $36.6–$38.3 billion. Income tax rate is projected around 25%. Capital expenditures are anticipated in the range of $1.9–$2 billion.
Magna International, based in Aurora, Canada, is a leading manufacturer and supplier of automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, apart from engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks.
Magna International currently carries a Zacks Rank #3 (Hold).
A few better-ranked automobile stocks are Fox Factory Holding Corp. (FOXF - Free Report) , Cummins Inc. (CMI - Free Report) and Ferrari N.V. (RACE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has a long-term growth rate of 16%.
Cummins has an expected long-term earnings growth rate of 12%.
Ferrari has an expected earnings growth rate of 14.1% in the long run.
Magna International, Inc. Price, Consensus and EPS Surprise
Magna International, Inc. Price, Consensus and EPS Surprise | Magna International, Inc. Quote
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If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>