Post Earnings Coverage as Magna International's Revenue Gained 5%; EPS Jumped 25%
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Upcoming AWS Coverage on Commercial Vehicle Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 31, 2017 / Active Wall St. announces its post-earnings coverage on Magna International Inc. (NYSE: MGA). The Company disclosed its first quarter fiscal 2017 financial results on May 11, 2017. Canadian auto parts maker outperformed top- and bottom-line expectations. Register with us now for your free membership at:
One of Magna International's competitors within the Auto Parts Wholesale space, Commercial Vehicle Group, Inc. (NASDAQ: CVGI), reported on May 04, 2017, its financial results for Q1 2017 which ended on March 31, 2017. AWS will be initiating a research report on Commercial Vehicle in the coming days.
Today, AWS is promoting its earnings coverage on MGA; touching on CVGI. Get our free coverage by signing up to:
Magna International posted record sales of $9.37 billion for the first quarter ended March 31, 2017, an increase of 5% over Q1 2016 sales of $8.90 billion. The Company stated that the strong y-o-y growth was achieved despite North American light vehicle production declining by 1% to 4.5million units and European light vehicle production increasing only 2% to 5.76 million units compared to the year ago same period. The Company's revenue numbers surpassed analysts' consensus estimates of $9.26 billion.
Magna International's complete vehicle assembly sales decreased 31% in Q1 2017 largely reflecting the end of production of the MINI Countryman and Paceman in 2016, partially offset by the start of production of the BMW 5-Series at the Company's assembly facility in Graz Austria.
During Q1 2017, Magna International's income from operations before income taxes was $806 million, up 19% compared to income from operations of $675 million in Q1 2016. The Company's adjusted EBIT increased 19% to $831 million for the reported quarter compared to $698 million for the prior year's comparable quarter. The Company's North America, Europe, Asia, and Rest of World segments all posted higher adjusted EBIT and adjusted EBIT percentage of sales compared to the prior year's corresponding quarter.
Net income attributable to Magna International was $586 million, 19% higher than Q1 2016 net income of $492 million. The Company's diluted earnings per share increased 25% to $1.53 in the reported quarter compared to $1.22 per diluted share in the prior year's same quarter. The Aurora, Ontario-based Company's results exceeded Wall Street's estimates of $1.34 per share.
Cash Matters
During Q1 2017, Magna International's cash provided from operating activities totaled $443 million, up 46% on a y-o-y basis. This included cash generated from operations of $870 million before changes in operating assets and liabilities, and $427 million invested in operating assets and liabilities. The Company's total investment activities for the reported quarter were $392 million, including $309 million in fixed asset additions and $83 million in investments, other assets and intangible assets.
Cash Return
During the three months ended March 31, 2017, Magna International repurchased 2.3 million shares for $100 million. In addition, the Company paid dividends of $105 million in the reported quarter. As of March 31, 2017, Magna International had $831 million of cash and cash equivalents compared with $974 million as of December 31, 2016.
In the earnings press release, Magna International's Board of Directors declared a quarterly dividend of $0.275 with respect to its outstanding Common Shares for the quarter ended March 31, 2017. This dividend is payable on June 09, 2017, to shareholders of record on May 26, 2017.
Outlook
For FY17, Magna International expects revenue in the range of $36.6 billion to $38.3 billion. The Company is expecting revenue from the Vehicle Production segment in the band of $30.8 billion–$32.1 billion, while sales from the Complete Vehicle Assembly sales are projected to be between $2.7 billion–$3 billion. Magna International is expecting FY17 capital spending to be approximately $2.0 billion.
Stock Performance
At the closing bell, on Tuesday, May 30, 2017, Magna International's stock marginally climbed 0.27%, ending the trading session at $45.11. A total volume of 1.38 million shares were traded at the end of the day. Magna International's stock price surged 5.25% in the last three months, 9.44% in the past six months, and 10.78% in the previous twelve months. Moreover, the stock gained 3.94% since the start of the year. The Company's shares are trading at a PE ratio of 8.24 and have a dividend yield of 2.44%. At Tuesday's closing price, the stock's net capitalization stands at $17.04 billion.
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