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Magna Q1 Earnings Miss Expectations, 2025 Guidance Revised
Magna International MGA reported first-quarter 2025 adjusted earnings of 78 cents per share, which decreased from the year-ago quarter’s $1.08, missing the Zacks Consensus Estimate of 90 cents.
Net sales decreased 8.21% year over year to $10.06 billion but surpassed the Zacks Consensus Estimate of $9.5 billion.
Magna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote
MGA’s Segmental Performance
The Body Exteriors & Structures segment’s revenues were $3.97 billion, down 10% year over year. This was due to lower production and the end of production of certain programs, divestitures, weakening of foreign currencies and customer price concessions. The figure missed the Zacks Consensus Estimate of $3.99 billion. The segment reported an adjusted EBIT of $230 million, down from $298 million recorded in the year-ago period. The metric also missed the Zacks Consensus Estimate of $258 million on higher pre-operating costs at new facilities, restructuring costs and labour costs.
The Power & Vision segment’s revenues declined year over year to $3.65 billion due to lower production and the end of production on certain programs. The metric surpassed the Zacks Consensus Estimate of $3.41 billion. Segmental adjusted EBIT rose from $98 million to $124 million due to lower production inputs, higher customer recoveries, lower net engineering costs, launch costs and warranty costs. The metric also topped the Zacks Consensus Estimate of $118 million.
Revenues from the Seating Systems segment fell 10% year over year to $1.31 billion and missed the Zacks Consensus Estimate of $1.34 billion due to lower production and the end of production of certain programs. Segmental adjusted loss before interest and tax was $30 million compared with adjusted EBIT of $52 million in the year-ago period due to reduced earnings on lower sales, higher net warranty costs and lower customer recoveries. The metric lagged the Zacks Consensus Estimate of adjusted EBIT of $38.68 million.
The Complete Vehicles segment’s revenues decreased 8% year over year to $1.28 billion due to lower assembly volumes. The metric outpaced the Zacks Consensus Estimate of $929 million. The segment reported an adjusted EBIT of $44 million, up from $27 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $8.91 million due to productivity and efficiency improvements.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
MGA’s Financials
Magna had $1.06 billion in cash and cash equivalents as of March 31, 2025, down from $1.25 billion as of Dec. 31, 2024. As of March 31, 2025, long-term debt was $3.89 billion, down from $4.13 billion as of Dec. 31, 2024.
In the reported quarter, cash provided from operating activities totaled $77 million, down from the year-ago figure of $261 million. The company declared its quarterly dividend of 48.50 cents per common share, which will be paid on May 30, 2025, to shareholders of record as of May 16.
Magna Updates 2025 Outlook
Magna now expects 2025 revenues in the band of $40-$41.6 billion, up from the previous target of $38.6-$40.2 billion. Adjusted EBIT margin is expected in the band of 5.1-5.6% compared with the previous estimate of 5.3-5.8%. Adjusted net income is estimated between $1.3 billion and $1.5 billion. Capex is estimated to be $1.7-$1.8 billion.
Magna carries a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Big Releases From the Auto Space
Autoliv Inc. ALV reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter. The figure beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year.
Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion. Operating cash flow in the quarter under review was $77 million and capital expenditure amounted to $93 million, resulting in a negative free cash flow of $16 million. In the quarter, ALV paid a dividend of 70 cents per share and repurchased 0.5 million shares.
Mobileye Global Inc. MBLY reported first-quarter 2025 adjusted earnings per share of 8 cents. The figure was in line with the Zacks Consensus Estimate. The company reported a loss of 7 cents per share in the year-ago quarter. Total revenues amounted to $438 million, beating the Zacks Consensus Estimate of $434 million. The metric also rose 83% year over year.
MBLY had cash and cash equivalents of $1.51 billion as of March 29, 2025, compared with $1.43 billion as of Dec. 28, 2024. Operating cash flow for the three months ended March 29, 2025, was $109 million. Capex was $14 million during the same time frame.
Group 1 Automotive GPI reported first-quarter 2025 adjusted earnings per share of $10.17, which beat the Zacks Consensus Estimate of $9.68 and rose 7.17% year over year. The automotive retailer registered net sales of $5.51 billion, beating the Zacks Consensus Estimate of $5.34 billion. The top line also rose from the year-ago quarter’s $4.47 billion.
Group 1 had cash and cash equivalents of $70.5 million as of March 31, 2025, up from $34.4 million as of Dec. 31, 2024. Total debt was $2.8 billion as of March 31, 2025, down from $2.91 billion as of Dec. 31, 2024.
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