Scotiabank Expects Weaker Earnings for Magna International

Key Points

• Scotiabank lowered its FY2027 EPS estimate for Magna to $10.77 from $10.93 but kept a "Strong‑Buy" rating, and its estimate remains above the consensus full‑year EPS of $8.89.
• MG stock opened at C$85.47 (up 4.3%), trading within a 52‑week range of C$45.31–C$95.18, with a market capitalization of C$23.27 billion and a P/E ratio of 36.06.
• Magna declared a quarterly dividend of $0.495 (annualized $1.98) with an ex‑dividend date of May 15, implying a ~2.3% yield and a payout ratio of about 82.3%.

Magna International Inc. (TSE:MG - Free Report) NYSE: MGA - Analysts at Scotiabank dropped their FY2027 EPS estimates for shares of Magna International in a report released on Wednesday, May 6th. Scotiabank analyst J. Goldman now expects that the company will post earnings of $10.77 per share for the year, down from their prior estimate of $10.93. Scotiabank currently has a "Strong-Buy" rating on the stock. The consensus estimate for Magna International's current full-year earnings is $8.89 per share.

MG has been the topic of a number of other reports. Veritas upgraded shares of Magna International to a "strong-buy" rating in a research report on Monday. Canadian Imperial Bank of Commerce upgraded shares of Magna International from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, February 18th. Four investment analysts have rated the stock with a Strong Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Magna International has a consensus rating of "Buy" and an average price target of C$61.00.

Magna International Stock Up 4.3%

MG stock opened at C$85.47 on Thursday. Magna International has a 52 week low of C$45.31 and a 52 week high of C$95.18. The company has a market capitalization of C$23.27 billion, a price-to-earnings ratio of 36.06, a price-to-earnings-growth ratio of 0.45 and a beta of 2.05. The firm's 50-day moving average is C$80.28 and its two-hundred day moving average is C$75.36. The company has a current ratio of 1.22, a quick ratio of 0.83 and a debt-to-equity ratio of 56.24.

Magna International (TSE:MG - Get Free Report) NYSE: MGA last released its quarterly earnings results on Friday, May 1st. The company reported C$1.92 EPS for the quarter. Magna International had a net margin of 1.59% and a return on equity of 5.43%. The company had revenue of C$14.43 billion for the quarter.

Magna International Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 29th will be issued a $0.495 dividend. This represents a $1.98 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, May 15th. Magna International's payout ratio is presently 82.28%.

About Magna International

Magna is one of the world's largest automotive suppliers and a trusted partner to automakers in the industry's most critical markets-North America, Europe, and China. With a global team and footprint spanning 28 countries, we bring unmatched scale, trusted reliability, and proven execution. Backed by nearly seven decades of experience, we combine deep manufacturing expertise with innovative vehicle systems to deliver performance, safety and quality.

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