Magna Q2 Earnings Top Estimates Aided By Higher Global Light Vehicle Production; Raises Guidance

Magna International Inc MGA reported second-quarter FY23 sales growth of 17.3% year-on-year to $10.98 billion, beating the analyst consensus of $10.20 billion.

Body Exteriors & Structures segment sales increased 15% Y/Y, Power & Vision grew 19.9%, Seating Systems jumped 27.9%, and Complete Vehicles sales gained 8.8%.

Operating income before income taxes for the quarter was $483 million, with an operating margin of 4.4%.

Adjusted EBIT was $603 million with an adjusted EBIT margin of 5.5%.

Adjusted EPS of $1.50 beat the analyst consensus of $1.25.

In Q2, the company generated cash from operations before changes in operating assets and liabilities of $879 million and used $332 million in operating assets and liabilities.

The company's Board declared a Q2 dividend of $0.46 per share, payable on September 1, 2023, to shareholders of record on August 18, 2023.

Outlook: Magna raised its FY23 sales outlook from $40.2 billion-$41.8 billion to $41.9 billion-$43.5 billion versus the estimate of $41.74 billion.

Magna raised FY23 adjusted EBIT margin outlook from 4.7%-5.1% to 4.8%-5.2%.

Price Action: MGA shares are trading higher by 1.49% at $64.00 in premarket on Friday.