Scotiabank Lowers Earnings Estimates for Magna International

Key Points

• Scotiabank cut its FY2026 EPS estimate for Magna to $6.83 (from $7.07) and forecast FY2027 at $8.03 while keeping a Sector Outperform rating and a $72 price target.
• Q1 beat: Magna reported $1.38 EPS vs. $1.01 expected, but management's muted FY2026 guidance (EPS $6.25–7.25) and analyst downgrades weighed on the stock, which traded down about 2.2%.
• Magna declared a quarterly dividend of $0.495 (annualized $1.98), implying a ~3.3% yield and a payout ratio around 67%.

Magna International Inc. (NYSE:MGA - Free Report) TSE: MG - Equities research analysts at Scotiabank dropped their FY2026 earnings estimates for Magna International in a report issued on Friday, May 1st. Scotiabank analyst J. Goldman now anticipates that the company will post earnings of $6.83 per share for the year, down from their previous estimate of $7.07. Scotiabank has a "Sector Outperform" rating and a $72.00 price objective on the stock. The consensus estimate for Magna International's current full-year earnings is $6.81 per share. Scotiabank also issued estimates for Magna International's FY2027 earnings at $8.03 EPS.

Several other equities research analysts also recently weighed in on the stock. Barclays decreased their price target on shares of Magna International from $67.00 to $66.00 and set an "equal weight" rating for the company in a research note on Monday, March 30th. Veritas raised shares of Magna International to a "strong-buy" rating in a research note on Monday. Citigroup lifted their price objective on shares of Magna International from $55.00 to $58.00 and gave the company a "neutral" rating in a report on Monday, March 23rd. Royal Bank Of Canada reiterated a "sector perform" rating and set a $57.00 price objective on shares of Magna International in a report on Wednesday, April 29th. Finally, UBS Group reduced their price objective on shares of Magna International from $70.00 to $62.00 and set a "neutral" rating for the company in a report on Tuesday, April 14th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $63.25.

Magna International Trading Down 2.2%

MGA opened at $59.50 on Tuesday. Magna International has a 1-year low of $32.54 and a 1-year high of $69.94. The company has a current ratio of 1.25, a quick ratio of 0.87 and a debt-to-equity ratio of 0.36. The company has a market cap of $16.32 billion, a P/E ratio of 24.90 and a beta of 1.44. The company has a fifty day moving average price of $58.59 and a two-hundred day moving average price of $54.39.

Magna International (NYSE:MGA - Get Free Report) TSE: MG last posted its quarterly earnings results 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 net margin of 1.60% and a return on equity of 13.85%. The firm had revenue of $10.13 billion during the quarter, compared to the consensus estimate of $10.14 billion. During the same period in the previous year, the firm posted $0.78 earnings per share. The business's revenue 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.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MGA. Integrated Wealth Concepts LLC boosted its holdings in Magna International by 19.8% during the first quarter. Integrated Wealth Concepts LLC now owns 6,808 shares of the company's stock worth $231,000 after purchasing an additional 1,123 shares during the last quarter. Ameriprise Financial Inc. boosted its holdings in Magna International by 14.2% during the second quarter. Ameriprise Financial Inc. now owns 56,868 shares of the company's stock worth $2,196,000 after purchasing an additional 7,073 shares during the last quarter. Farther Finance Advisors LLC boosted its holdings in Magna International by 98.4% during the third quarter. Farther Finance Advisors LLC now owns 2,839 shares of the company's stock worth $134,000 after purchasing an additional 1,408 shares during the last quarter. Cigna Investments Inc. New purchased a new position in Magna International during the third quarter worth about $218,000. Finally, Meritage Portfolio Management purchased a new position in Magna International during the third quarter worth about $3,551,000. 67.49% of the stock is currently owned by hedge funds and other institutional investors.

Magna International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 15th will be issued a dividend of $0.495 per share. The ex-dividend date is Friday, May 15th. This represents a $1.98 annualized dividend and a yield of 3.3%. Magna International's payout ratio is 67.12%.

Magna International News Roundup

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: Q1 beat — Magna reported stronger‑than‑expected Q1 earnings, improved margins and cash‑flow gains, showing operational strength despite weak global vehicle production; investors view this as proof the business can grow profitably. Magna Beats Q1 Earnings Estimates, Revises 2026 Sales Outlook
• Positive Sentiment: Analyst upgrades/target increases — TD raised its price target from $75 to $76 and maintains a Buy rating, and Veritas upgraded the stock to "strong‑buy", offering incremental support to the share price and signaling continued analyst confidence. TD raises price target to $76
• Positive Sentiment: Industry bullish write‑ups — coverage highlighting Magna’s auto‑supply momentum and growth prospects underscores the company’s exposure to EV and ADAS content gains, a structural positive for longer‑term revenue/earnings. Auto Supply Momentum: Magna’s Growth Story Unfolds
• Neutral Sentiment: Corporate housekeeping — Magna announced voting results from its 2026 annual meeting with routine approvals; no material governance surprises. Magna Announces 2026 Annual Meeting Results
• Neutral Sentiment: Broker consensus — an aggregate "Hold" remains among brokerages, reflecting mixed views that balance near‑term strength against cautious guidance. Magna Receives Average Rating of "Hold"
• Negative Sentiment: Guidance disappointment reaction — despite the Q1 beat, management did not meaningfully lift full‑year guidance, which prompted a sharp negative market reaction as investors had hoped for stronger forward guidance. Magna Stock Craters 10% as Strong Q1 Fails to Lift Full-Year Outlook
• Negative Sentiment: Analyst cuts to EPS — Scotiabank trimmed its FY2026 and FY2027 EPS forecasts (FY2026 to $6.83, FY2027 to $8.03), lowering near‑term earnings expectations even as it keeps an Outperform rating and $72 target; downward estimate revisions can weigh on sentiment. Scotiabank reduces FY2026/FY2027 EPS estimates

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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