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Magna International Inc Class A MGA

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Magna Q3 Recovers From COVID-19 Hit Q2, Increases 2020 Guidance; Slight FVE Raise to $65

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat rated Magna International reported third-quarter earnings per share before special items (EPS) of $1.95, handily beating the $1.37 CapIQ consensus EPS by $0.58 and up $0.54 from $1.41 EPS reported a year ago. Revenue declined 2% to $9.1 billion from $9.3 billion last year. However, sequentially from the second quarter, revenue more than doubled from $4.3 billion. Adjusted EBIT was $778 million on an 8.5% margin, expanding 250 basis points versus 6.0% in the prior year, which included two weeks of a GM strike. Despite COVID-19, Magna maintained its dividend, paying shareholders $115 million in the quarter.

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Company Profile

Business Description

Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contracted vehicle assembly. Roughly half of Magna's revenue comes from North America while Europe accounts for approximately 44%.

Contact
337 Magna Drive
Aurora, ON, L4G 7K1, Canada
T +1 905 726-2462
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type —
Employees 157,000

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