Scotiabank Has Pessimistic Outlook of TSE:MG FY2026 Earnings

Key Points

• Scotiabank lowered its FY2026 EPS estimate for Magna to $9.30 from $9.67 while maintaining a "Strong‑Buy" rating; Scotiabank's FY2027 EPS forecast is $10.93 and the market consensus for FY2026 is $8.89.
• Magna reported quarterly EPS of C$1.92 on C$14.43 billion in revenue, with a net margin of 1.59% and ROE of 5.43%, and the stock trades around C$81 with a P/E of 34.19.
• The company declared a quarterly dividend of $0.495 (annualized $1.98) payable May 29, implying a yield of about 2.4% and a payout ratio near 82%.

Magna International Inc. (TSE:MG - Free Report) NYSE: MGA - Equities research analysts at Scotiabank lowered their FY2026 earnings per share estimates for Magna International in a research note issued to investors on Friday, May 1st. Scotiabank analyst J. Goldman now forecasts that the company will earn $9.30 per share for the year, down from their prior estimate of $9.67. 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. Scotiabank also issued estimates for Magna International's FY2027 earnings at $10.93 EPS.

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

Other analysts also recently issued research reports about the company. Canadian Imperial Bank of Commerce upgraded Magna International from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, February 18th. Veritas upgraded Magna International to a "strong-buy" rating in a research note on Monday. Four research analysts have rated the stock with a Strong Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Buy" and a consensus target price of C$61.00.

Magna International Stock Down 2.0%

Shares of MG opened at C$81.02 on Tuesday. Magna International has a 52 week low of C$44.85 and a 52 week high of C$95.18. The company has a quick ratio of 0.83, a current ratio of 1.22 and a debt-to-equity ratio of 17.27. The company has a market capitalization of C$22.40 billion, a price-to-earnings ratio of 34.19, a PEG ratio of 0.45 and a beta of 1.91. The stock's 50-day moving average price is C$80.46 and its 200-day moving average price is C$75.06.

Magna International Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Stockholders of record on Friday, May 29th will be paid a $0.495 dividend. The ex-dividend date is Friday, May 15th. This represents a $1.98 dividend on an annualized basis and a dividend yield of 2.4%. Magna International's dividend payout ratio is presently 82.28%.

Magna International Company Profile

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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