Magna International (NYSE:MGA) Issues Quarterly Earnings Results

Key Points

• Magna International reported a quarterly EPS of $1.44, exceeding expectations of $1.19, but revenue fell 3% year-over-year to $10.82 billion.
• The company announced a quarterly dividend of $0.485 per share, yielding an annualized dividend of $1.94.
• Analysts have differing outlooks, with targets ranging from $31.00 to $45.00 and an average rating of "Hold" for the stock.

Magna International (NYSE:MGA - Get Free Report) TSE: MG released its earnings results on Friday. The company reported $1.44 EPS for the quarter, topping the consensus estimate of $1.19 by $0.25, Zacks reports. Magna International had a return on equity of 11.96% and a net margin of 2.73%. The business had revenue of $10.82 billion for the quarter, compared to the consensus estimate of $10.10 billion. During the same period in the previous year, the company posted $1.35 earnings per share. The company's revenue for the quarter was down 3.0% compared to the same quarter last year. Magna International updated its FY 2025 guidance to EPS.

Magna International Stock Performance

Shares of MGA stock traded up $0.33 on Friday, hitting $41.33. The company had a trading volume of 3,740,254 shares, compared to its average volume of 1,217,117. The firm has a market cap of $11.65 billion, a P/E ratio of 9.70, a price-to-earnings-growth ratio of 0.96 and a beta of 1.51. The company has a 50-day moving average price of $39.42 and a 200-day moving average price of $37.36. The company has a quick ratio of 0.74, a current ratio of 1.06 and a debt-to-equity ratio of 0.32. Magna International has a twelve month low of $30.39 and a twelve month high of $47.22.

Magna International Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 30th. Stockholders of record on Friday, May 16th were issued a $0.485 dividend. This represents a $1.94 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend was Friday, May 16th. Magna International's payout ratio is 48.50%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on MGA shares. Bank of America upped their price target on Magna International from $42.00 to $45.00 and gave the company a "neutral" rating in a report on Monday, June 16th. The Goldman Sachs Group lowered their price target on Magna International from $38.00 to $31.00 and set a "sell" rating on the stock in a report on Thursday, April 10th. CIBC upped their price objective on Magna International from $33.00 to $38.00 and gave the company a "neutral" rating in a research report on Monday, May 5th. Wells Fargo & Company upped their price objective on Magna International from $37.00 to $38.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. Finally, BMO Capital Markets reduced their price objective on Magna International from $47.00 to $41.00 and set an "outperform" rating for the company in a research report on Monday, May 5th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $42.71.

Hedge Funds Weigh In On Magna International

A hedge fund recently raised its stake in Magna International stock. Integrated Wealth Concepts LLC increased its holdings in Magna International Inc. (NYSE:MGA - Free Report) TSE: MG by 19.8% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 6,808 shares of the company's stock after purchasing an additional 1,123 shares during the quarter. Integrated Wealth Concepts LLC's holdings in Magna International were worth $231,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 67.49% of the company's stock.

About Magna International

Magna International Inc designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles.

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