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 expanded. GAAP earnings per share grew.
Margins dropped across the board.
Magna International booked revenue of $8.36 billion. The 12 analysts polled by S&P Capital IQ expected to see revenue of $8.14 billion on the same basis. GAAP reported sales were 9.1% higher than the prior-year quarter's $7.67 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 $1.57. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.43 per share. GAAP EPS of $1.57 for Q1 were 7.5% higher than the prior-year quarter's $1.46 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 12.5%, 40 basis points worse than the prior-year quarter. Operating margin was 5.0%, 40 basis points worse than the prior-year quarter. Net margin was 4.4%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.35 billion. On the bottom line, the average EPS estimate is $1.59.
Next year's average estimate for revenue is $32.95 billion. The average EPS estimate is $5.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 172 members out of 196 rating the stock outperform, and 24 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 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 $59.44.
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