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.