Why Magna International Stock Is Gaining Today
Magna International, Inc. (NYSE:MGA) shares traded higher on Friday after the company posted stronger-than-expected third-quarter results.
Quarterly Results Overview
- Adjusted earnings per share reached $1.33, surpassing analyst estimates of $1.22.
- Quarterly revenue totaled $10.462 billion, exceeding projections of $10.138 billion.
- Sales rose by 2%, supported by a 3% increase in global light vehicle production.
Operating and Profitability Metrics
- Income from operations before taxes dropped 32% to $473 million, as the prior year included deferred revenue from Fisker.
- Adjusted EBIT grew 3% to $613 million, with the EBIT margin improving by 10 basis points.
- The results show productivity and efficiency gains from restructuring and operational initiatives, along with increased equity income.
Cash Flow and Investments
- Operating cash flow before working-capital changes was $787 million.
- Additional $125 million came from operating assets and liabilities adjustments.
- Investments included $267 million in capital expenditures, $100 million for investments and intangibles, and $2 million in private equity.
Sales increased 2%, supported by a 3% rise in global light vehicle production.
Related Insight
Colgate remains a leader in the toothpaste segment, though its stock recently touched a 52-week low.
Author’s summary: Magna’s stock climbs as strong quarterly earnings, improved efficiency, and solid revenue growth outweigh a decline in pre-tax operating income.