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Is a Beat in Store for Magna (MGA) This Earnings Season?
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Magna International (MGA - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 19, before the bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.98 per share on revenues of $9.92 billion.
This automotive components supplier registered higher-than-anticipated earnings in the last reported quarter on robust revenues across all four segments of the company.
Over the trailing four quarters, Magna surpassed the Zacks Consensus Estimate on all occasions, the average surprise being 20.81%. This is depicted in the graph below:
The Zacks Consensus Estimate for Magna’s fourth-quarter earnings per share witnessed a downward revision of six cents to $1.98 in the past 30 days. Nonetheless, this compares favorably with the year-ago quarter’s earnings of $1.41 per share, indicating a 40.43% jump, year on year. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 5.62%.
What the Zacks Model Says
Our proven model predicts an earnings beat for Magna this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Magna has an Earnings ESP of +5.42%. This is because the Most Accurate Estimate of $2.09 per share comes in 11 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
With the economy gradually recovering from the pandemic blues, auto sales across the globe have are rebounding eventually, highlighted by the rising momentum of new vehicle sales. This is anticipated to have boosted the automotive components supplier’s revenues during the quarter to be reported.
Notably, the Zacks Consensus Estimate for revenues from the Body Exteriors & Structures segment for the period in discussion is pegged at $4,014 million, up from the prior-year quarter’s $3,923 million. In fact, the consensus mark for adjusted EBITDA for the segment is pinned at $364 million, calling for a rise from the $289 million recorded in the prior-year quarter.
The consensus mark for revenues from the Power Vision segment is pinned at $2,773 million, indicating a rise from the $2,725 million recorded in the year-ago quarter. Moreover, the consensus mark for the adjusted EBITDA from the segment is pegged at $223 million, suggesting a jump from the prior-year quarter’s $163 million.
Also, the consensus estimate for quarterly revenues from the Complete Vehicles segment is pinned at $1,812 million, indicating a rise from the $1,461 million seen in the prior-year quarter. In addition, the consensus mark for the segment’s adjusted EBITDA is pegged at $91 million, calling for a surge from the $44 million reported in the fourth quarter of 2019.
Further, Magna’s strategic collaborations and acquisitions, and expansion of business through joint ventures and hub openings are fueling its growth prospects. This is likely to have bolstered the firm’s top line during the fourth quarter.
Nonetheless, the Zacks Consensus Estimate for quarterly revenues from the Seating Systems segment is pinned at $1,385 million, indicating a decline from the $1,426 million recorded in the year-earlier quarter. Additionally, the consensus mark for the segment’s adjusted EBITDA is pegged at $69 million, suggesting a fall from the prior-year quarter’s $79 million. This might have dented the firm’s margins during the December-end quarter.
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Is a Beat in Store for Magna (MGA) This Earnings Season?
Magna International (MGA - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 19, before the bell. The Zacks Consensus Estimate for the quarter’s earnings is pegged at $1.98 per share on revenues of $9.92 billion.
This automotive components supplier registered higher-than-anticipated earnings in the last reported quarter on robust revenues across all four segments of the company.
Over the trailing four quarters, Magna surpassed the Zacks Consensus Estimate on all occasions, the average surprise being 20.81%. This is depicted in the graph below:
Magna International Inc. Price and EPS Surprise
Magna International Inc. price-eps-surprise | Magna International Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Magna’s fourth-quarter earnings per share witnessed a downward revision of six cents to $1.98 in the past 30 days. Nonetheless, this compares favorably with the year-ago quarter’s earnings of $1.41 per share, indicating a 40.43% jump, year on year. Moreover, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 5.62%.
What the Zacks Model Says
Our proven model predicts an earnings beat for Magna this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Magna has an Earnings ESP of +5.42%. This is because the Most Accurate Estimate of $2.09 per share comes in 11 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Magna, peers of which include American Axle (AXL - Free Report) , Meritor Inc and Adient Plc (ADNT - Free Report) , carries a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Factors
With the economy gradually recovering from the pandemic blues, auto sales across the globe have are rebounding eventually, highlighted by the rising momentum of new vehicle sales. This is anticipated to have boosted the automotive components supplier’s revenues during the quarter to be reported.
Notably, the Zacks Consensus Estimate for revenues from the Body Exteriors & Structures segment for the period in discussion is pegged at $4,014 million, up from the prior-year quarter’s $3,923 million. In fact, the consensus mark for adjusted EBITDA for the segment is pinned at $364 million, calling for a rise from the $289 million recorded in the prior-year quarter.
The consensus mark for revenues from the Power Vision segment is pinned at $2,773 million, indicating a rise from the $2,725 million recorded in the year-ago quarter. Moreover, the consensus mark for the adjusted EBITDA from the segment is pegged at $223 million, suggesting a jump from the prior-year quarter’s $163 million.
Also, the consensus estimate for quarterly revenues from the Complete Vehicles segment is pinned at $1,812 million, indicating a rise from the $1,461 million seen in the prior-year quarter. In addition, the consensus mark for the segment’s adjusted EBITDA is pegged at $91 million, calling for a surge from the $44 million reported in the fourth quarter of 2019.
Further, Magna’s strategic collaborations and acquisitions, and expansion of business through joint ventures and hub openings are fueling its growth prospects. This is likely to have bolstered the firm’s top line during the fourth quarter.
Nonetheless, the Zacks Consensus Estimate for quarterly revenues from the Seating Systems segment is pinned at $1,385 million, indicating a decline from the $1,426 million recorded in the year-earlier quarter. Additionally, the consensus mark for the segment’s adjusted EBITDA is pegged at $69 million, suggesting a fall from the prior-year quarter’s $79 million. This might have dented the firm’s margins during the December-end quarter.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>