Scotiabank Has Pessimistic Outlook of MGA FY2026 Earnings

Key Points

• Scotiabank cut its FY2026 EPS estimate for Magna International to $6.63 from $6.83, signaling a more cautious outlook. The firm kept a Sector Outperform rating and a $74 price target.
• Magna’s latest quarterly results were better than expected, with EPS of $1.38 versus the $1.01 consensus and revenue of $10.13 billion, slightly below estimates. The company also reaffirmed FY2026 guidance of $6.25 to $7.25 EPS.
• Analyst sentiment is mixed overall, with MarketBeat data showing an average Hold rating and a consensus price target of $65.73. Magna shares recently traded at $65.74, near their 50-day average and below the 52-week high of $69.94.

Magna International Inc. (NYSE:MGA - Free Report) TSE: MG - Equities research analysts at Scotiabank reduced their FY2026 earnings estimates for shares of Magna International in a report released on Thursday, July 23rd. Scotiabank analyst J. Goldman now forecasts that the company will post earnings of $6.63 per share for the year, down from their previous forecast of $6.83. Scotiabank has a "Sector Outperform" rating and a $74.00 price objective on the stock. The consensus estimate for Magna International's current full-year earnings is $6.86 per share. Scotiabank also issued estimates for Magna International's FY2027 earnings at $7.46 EPS.

Several other research analysts have also weighed in on the company. The Goldman Sachs Group lowered their price target on Magna International from $60.00 to $52.00 and set a "sell" rating on the stock in a research report on Tuesday, April 14th. JPMorgan Chase & Co. decreased their target price on shares of Magna International from $71.00 to $70.00 and set an "overweight" rating for the company in a research note on Thursday, April 23rd. Citigroup raised their target price on shares of Magna International from $58.00 to $75.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Royal Bank Of Canada boosted their target price on shares of Magna International to $57.00 and gave the stock a "sector perform" rating in a report on Monday, July 13th. Finally, Barclays dropped their price target on shares of Magna International from $67.00 to $66.00 and set an "equal weight" rating on the stock in a research report on Monday, March 30th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Magna International currently has an average rating of "Hold" and a consensus price target of $65.73.

Magna International Stock Performance

Shares of NYSE MGA opened at $65.74 on Friday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.88 and a current ratio of 1.22. The stock has a 50 day moving average price of $65.00 and a 200 day moving average price of $60.54. The stock has a market capitalization of $17.58 billion, a PE ratio of 27.51, a price-to-earnings-growth ratio of 0.92 and a beta of 1.44. Magna International has a 52 week low of $40.51 and a 52 week high of $69.94.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last announced its quarterly earnings data on Friday, May 1st. The company reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.37. Magna International had a return on equity of 14.01% and a net margin of 1.60%.The company had revenue of $10.13 billion during the quarter, compared to analysts' expectations of $10.14 billion. During the same quarter last year, the company earned $0.78 EPS. Magna International's revenue for the quarter was up 3.1% compared to the same quarter last year. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS.

Magna International Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were issued a dividend of $0.495 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $1.98 dividend on an annualized basis and a dividend yield of 3.0%. Magna International's payout ratio is presently 82.85%.

Institutional Investors Weigh In On Magna International

Hedge funds have recently added to or reduced their stakes in the business. Hillsdale Investment Management Inc. raised its position in shares of Magna International by 2.3% in the fourth quarter. Hillsdale Investment Management Inc. now owns 725,425 shares of the company's stock valued at $38,741,000 after purchasing an additional 16,255 shares during the period. Plato Investment Management Ltd boosted its holdings in shares of Magna International by 74.5% during the 4th quarter. Plato Investment Management Ltd now owns 69,752 shares of the company's stock worth $3,741,000 after buying an additional 29,785 shares during the period. Mediolanum International Funds Ltd grew its stake in Magna International by 83.1% in the 1st quarter. Mediolanum International Funds Ltd now owns 134,736 shares of the company's stock valued at $7,210,000 after buying an additional 61,151 shares during the last quarter. ARGA Investment Management LP grew its stake in Magna International by 1.1% in the 4th quarter. ARGA Investment Management LP now owns 4,193,129 shares of the company's stock valued at $223,512,000 after buying an additional 44,996 shares during the last quarter. Finally, Systematic Financial Management LP raised its holdings in Magna International by 39.6% in the 4th quarter. Systematic Financial Management LP now owns 68,300 shares of the company's stock valued at $3,640,000 after acquiring an additional 19,390 shares during the period. Institutional investors and hedge funds own 67.49% of the company's stock.

Magna International Company Profile

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna's broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.

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