The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Magna International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins increased across the board.
Magna International recorded revenue of $7.41 billion. The 10 analysts polled by S&P Capital IQ expected to see revenue of $7.02 billion on the same basis. GAAP reported sales were 6.3% higher than the prior-year quarter's $6.97 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 $1.16. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.03 per share. GAAP EPS of $1.66 for Q3 were 295% higher than the prior-year quarter's $0.42 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 11.8%, 80 basis points better than the prior-year quarter. Operating margin was 4.3%, 60 basis points better than the prior-year quarter. Net margin was 5.3%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.36 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $29.79 billion. The average EPS estimate is $5.14.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 173 members out of 196 rating the stock outperform, and 23 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 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 $53.69.
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