The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Magna International beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew.
Margins expanded across the board.
Magna International recorded revenue of $8.03 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $7.74 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $7.25 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 $1.69. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.16 per share. Non-GAAP EPS of $1.69 for Q4 were 16% higher than the prior-year quarter's $1.46 per share. GAAP EPS of $1.49 for Q4 were 13% higher than the prior-year quarter's $1.32 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 12.4%, 80 basis points better than the prior-year quarter. Operating margin was 4.3%, 30 basis points better than the prior-year quarter. Net margin was 4.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $7.86 billion. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $32.11 billion. The average EPS estimate is $5.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 172 members out of 195 rating the stock outperform, and 23 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Magna International a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Magna International is hold, with an average price target of $54.24.
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