The 10-second takeaway
For the quarter ended March 31 (Q1), Magna International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Gross margins expanded, operating margins improved, net margins were steady.
Magna International recorded revenue of $7.67 billion. The eight analysts polled by S&P Capital IQ hoped for revenue of $7.46 billion on the same basis. GAAP reported sales were 6.6% higher than the prior-year quarter's $7.19 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.46. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.29 per share. GAAP EPS of $1.46 for Q1 were 12% higher than the prior-year quarter's $1.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.9%, 70 basis points better than the prior-year quarter. Operating margin was 5.4%, 40 basis points better than the prior-year quarter. Net margin was 4.5%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $7.45 billion. On the bottom line, the average EPS estimate is $1.24.
Next year's average estimate for revenue is $29.57 billion. The average EPS estimate is $4.81.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 166 members out of 189 rating the stock outperform, and 23 members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Magna International a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Magna International is outperform, with an average price target of $54.19.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.