Magna Shares Slide On Q2 Earnings Miss As Chip Shortage Bites; Cuts FY21 Outlook

Magna International Inc MGA reported second-quarter FY21 sales growth of 110% year-on-year, to $9.03 billion, missing the analyst consensus of $9.37 billion.
Global light vehicle production growth of 58%, primarily driven by increases in North America and Europe, led to the Q2 sales growth.
Body Exteriors & Structures segment sales jumped 125% Y/Y, Power & Vision rose 121.9%, Seating Systems gained 122.5%, and Complete Vehicles sales increased 59.7%.
The company said significant production disruptions due to the global semiconductor chip shortage negatively affected Adjusted EBIT and EPS.
The operating margin was 5.9%, and operating income before income taxes for the quarter was $540 million.
Adjusted EBIT was $557 million with an adjusted EBIT margin of 6.2%.
Adjusted EPS of $1.40 missed the analyst consensus of $1.47.
Outlook: Magna has cut FY21 sales guidance to $38 billion - $39.5 billion (prior $40.2 billion - $41.8 billion), versus the consensus of $40.99 billion.
Price action: MGA shares traded lower by 4.27% at $80.80 in premarket on the last check Friday.

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