Magna International Inc MGA

Magna Earnings: Despite UAW Strike, Reports Solid Results and Tweaks Guidance

No-moat-rated Magna reported third-quarter earnings per share before special items of $1.46, beating the $1.33 FactSet consensus by $0.13 and up $0.36 from the $1.10 result reported last year. Higher customer volumes on less supply chain disruption and better throughput were partially offset by customers’ UAW strike, increased engineering spending, and inflationary cost pressures. Revenue jumped 15% to $10.7 billion, up from $9.3 billion in the prior year on customer volume, new business backlog, the Veoneer acquisition, and customer cost recoveries. The top line beat consensus by 3%. Organic revenue increased 10%, 2 percentage points better than an 8% increase in global production weighted to Magna's customer base.