Magna International MGA reported fourth-quarter 2024 adjusted earnings of $1.69 per share, which increased from the year-ago quarter’s $1.33 and beat the Zacks Consensus Estimate of $1.46. 

Net sales increased 2% year over year to $10.6 billion and surpassed the Zacks Consensus Estimate of $10.3 billion.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Magna International Inc. Price, Consensus and EPS Surprise

Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote

Segmental Performance

The Body Exteriors & Structures segment’s revenues were $4.07 billion, down 3% year over year. This can be attributed to the end of production of certain programs, lower production on a few programs, divestitures and customer price concessions. Revenues, however, topped the Zacks Consensus Estimate of $3.99 billion. The segment reported an adjusted EBIT of $371 million, up from $280 million recorded in the year-ago period. The metric also surpassed the Zacks Consensus Estimate of $303 million because of favorable impact on commercial items, productivity and efficiency improvements as well as foreign exchange gains.

The Power & Vision segment’s revenues remained flat year over year to $3.79 billion due to the launch of new programs offset by lower production on certain programs & end of production on certain programs. The metric surpassed the Zacks Consensus Estimate of $3.67 billion. Segmental adjusted EBIT rose from $231 million to $235 million due to higher equity income, operational excellence and cost initiatives as well as lower net engineering costs. The metric also topped the Zacks Consensus Estimate of $230 million. 

Revenues from the Seating Systems segment rose 6% year over year to $1.51 billion and topped the Zacks Consensus Estimate of $1.38 billion due to the launch of new programs and customer input cost recoveries. Segmental adjusted EBIT rose from $44 million to $67 million due to a net favorable impact on commercial items, higher equity income and lower net engineering costs. The metric also topped the Zacks Consensus Estimate of $46.15 million.

The Complete Vehicles segment’s revenues increased 17% year over year to $1,402 million due to higher engineering revenues, favorable program mix and customer input cost recoveries. The metric, however, missed the Zacks Consensus Estimate of $1,405 million. The segment reported an adjusted EBIT of $56 million, up from $43 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $37.24 million due to higher margins on higher engineering sales.

Financials

Magna had $1.25 billion in cash and cash equivalents as of Dec. 31, 2024, up from $1.2 billion as of Dec. 31, 2023. As of Dec. 31, 2024, long-term debt was $4.13 billion, down from $4.18 billion as of Dec. 31, 2023.

In the reported quarter, cash provided from operating activities totaled $1.91 billion, up from the year-ago figure of $1.58 billion.

The company hiked its quarterly dividend by 2% to 48.50 cents per common share, marking its 15th consecutive year of fourth-quarter increases. The dividend will be paid on March 14, 2025, to shareholders of record as of Feb. 28, 2025.

Magna Provides 2025 Outlook

Magna expects 2025 revenues in the band of $38.6-$40.2 billion compared with $42.8 billion reported in 2024. Adjusted EBIT margin is projected in the band of 5.3-5.8% compared with 5.4% reported in 2024. Adjusted net income is estimated between $1.3 billion and $1.5 billion compared with $1.55 billion reported in 2024. Capex is estimated to be $1.8 billion.

MGA’s Zacks Rank & Key Picks

Magna carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Garrett Motion Inc. GTX. While GELYY & DAN sport a Zacks Rank #1 (Strong Buy) each, GTX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days. 

The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings indicates year-over-year growth of 2.16% and 17.92%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Magna International Inc. (MGA) : Free Stock Analysis Report

Dana Incorporated (DAN) : Free Stock Analysis Report

Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report

Garrett Motion Inc. (GTX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research