FY2027 EPS Forecast for Magna International Cut by Analyst

Key Points

• Scotiabank lowered Magna International’s FY2027 EPS forecast to $7.77 from $7.91, while maintaining a “Sector Outperform” rating and a $78 price target.
• Analyst sentiment is mixed: Magna has an overall “Hold” consensus rating, with an average price target of $68.87, despite several firms maintaining or issuing Buy-equivalent ratings.
• Magna reported quarterly EPS of $1.86, surpassing the $1.53 consensus estimate, and revenue rose 3.3% year over year to $10.84 billion. The company also pays a quarterly dividend of $0.495, yielding approximately 3.1% annually.

Magna International Inc. (NYSE:MGA - Free Report) TSE: MG - Equities research analysts at Scotiabank cut their FY2027 EPS estimates for Magna International in a note issued to investors on Thursday, October 22nd. Scotiabank analyst J. Goldman now expects that the company will post earnings of $7.77 per share for the year, down from their prior estimate of $7.91. Scotiabank has a "Sector Outperform" rating and a $78.00 price target on the stock. The consensus estimate for Magna International's current full-year earnings is $7.03 per share.

A number of other research analysts have also recently weighed in on the company. Wells Fargo & Company lifted their target price on Magna International from $62.00 to $67.00 and gave the company an "equal weight" rating in a report on Monday, August 3rd. Morgan Stanley lowered their price target on Magna International from $69.00 to $68.00 and set an "equal weight" rating for the company in a research report on Thursday, October 15th. Canadian Imperial Bank of Commerce lowered Magna International from an "outperformer" rating to a "hold" rating and dropped their price target for the stock from $78.00 to $70.00 in a research note on Wednesday, October 21st. JPMorgan Chase & Co. restated a "neutral" rating and issued a $72.00 price objective (down from $77.00) on shares of Magna International in a report on Tuesday, September 15th. Finally, Wall Street Zen lowered Magna International from a "strong-buy" rating to a "buy" rating in a research note on Saturday, September 12th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $68.87.

Magna International Stock Down 0.1%

Shares of MGA opened at $63.92 on Tuesday. The firm has a market cap of $16.93 billion, a PE ratio of 23.16, a price-to-earnings-growth ratio of 0.68 and a beta of 1.46. The company's fifty day moving average is $65.57 and its two-hundred day moving average is $62.50. Magna International has a fifty-two week low of $44.64 and a fifty-two week high of $73.22. The company has a quick ratio of 0.88, a current ratio of 1.22 and a debt-to-equity ratio of 0.38.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last issued its quarterly earnings results on Friday, July 31st. The company reported $1.86 EPS for the quarter, topping the consensus estimate of $1.53 by $0.33. The firm had revenue of $10.84 billion during the quarter, compared to analyst estimates of $10.63 billion. Magna International had a net margin of 1.80% and a return on equity of 15.04%. Magna International's revenue for the quarter was up 3.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.44 earnings per share. Magna International has set its FY 2026 guidance at 6.700-7.300 EPS.

Institutional Investors Weigh In On Magna International

A number of large investors have recently added to or reduced their stakes in MGA. Bank of New York Mellon Corp acquired a new stake in Magna International in the second quarter valued at $28,495,000. TD Waterhouse Canada Inc. raised its position in shares of Magna International by 10.7% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 2,130,562 shares of the company's stock valued at $134,577,000 after acquiring an additional 206,433 shares in the last quarter. QV Investors Inc. lifted its stake in Magna International by 33.3% during the third quarter. QV Investors Inc. now owns 739,472 shares of the company's stock worth $47,220,000 after purchasing an additional 184,631 shares during the last quarter. Public Employees Retirement System of Ohio bought a new position in Magna International during the second quarter worth $9,160,000. Finally, Plato Investment Management Ltd bought a new position in Magna International during the second quarter worth $7,473,000. 67.49% of the stock is owned by institutional investors and hedge funds.

Magna International Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were paid a $0.4950 dividend. The ex-dividend date was Friday, August 14th. This represents a $1.98 annualized dividend and a dividend yield of 3.1%. Magna International's dividend payout ratio is 71.74%.

About Magna International

Magna International Inc is a global automotive supplier headquartered in Aurora, Ontario, Canada. The company designs, engineers and manufactures components and systems for automakers, serving vehicle manufacturers across North America, Europe and Asia.

Its products and services span several automotive categories, including body and chassis structures, exterior systems, powertrain and driveline components, seating, vehicle electronics, lighting, mirrors, and advanced driver assistance technologies.

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