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A Peek Into Key Predictions Ahead of Magna (MGA) Q4 Earnings
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Magna International (MGA - Free Report) is scheduled to report fourth-quarter 2021 results on May 6, before the bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 83 cents per share and $8.94 billion, respectively.
This automotive equipment supplier’s third-quarter 2021 earnings lagged the Zacks Consensus Estimate and witnessed a year-over-year decline. Over the trailing four quarters, Magna surpassed the Zacks Consensus Estimate on two occasions for as many misses, with the average surprise being 8.3%.
The Zacks Consensus Estimate for Magna’s fourth-quarter earnings per share has witnessed an upward revision of 2 cents in the past 30 days. The bottom-line projection calls for a year-over-year deterioration of 70.6%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 15.4%.
Factors at Play
Magna has been battling chip crunch-related headwinds, which are expected to weigh on fourth-quarter 2021 results. As a result of semiconductor chip shortages, production schedules of Magna’s customers’ have been unpredictable, resulting in labor and other operational inefficiencies at its facilities. Global light vehicle production for the fourth quarter declined 13% year over year. This is anticipated to have reduced the demand for Magna's products during the quarter to be reported, thereby resulting in lower year-over-year revenues across all segments.
The Zacks Consensus Estimate for fourth-quarter revenues and adjusted EBIT from the Body Exteriors & Structures segment is pegged at $3,624 million and $140 million, implying a year-over-year decline of 17.5% and 74.2%, respectively.
The consensus estimate for quarterly revenues and pretax profit from the Complete Vehicles segment stands at $1,504 million and $73 million, indicating a drop of 15% and 38.2%, respectively, on a year-over-year basis.
The Zacks Consensus Estimate for quarterly revenues and adjusted EBIT from the Seating Systems unit is pegged at $1,147 million and $19 million, indicating a decrease of 17.5% and 77.6%, respectively, from a year ago.
The consensus mark for revenues and adjusted EBIT from the Power & Vision unit is pegged at $2,782 million and $112 million, pointing to a year-over-year deterioration of 12.5% and 69%, respectively.
Magna’s upcoming results are likely to be negatively impacted by inflationary cost increases in production inputs including freight, labor and commodities. Elevated capital spending to evolve its business profile for incorporating technologically-advanced new products might have further impaired Magna’s quarterly performance.
Earnings Whispers
Our proven Zacks model does not conclusively predict 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. That is not the case here as elaborated below.
Earnings ESP: The company has an Earnings ESP of +3.03%. This is because the Most Accurate Estimate is pegged 2 cents above 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 currently carries a Zacks Rank of 4 (Sell).
While an earnings beat looks uncertain for Magna, below we highlight three stocks from the auto space, which, according to our model, have the right combination of elements to surpass earnings estimates for the quarter to be reported:
Advance Auto Parts (AAP - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 14.
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $2.36 billion, respectively. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
Asbury Automotive (ABG - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.45 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +8.11% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.85 per share and $3.20 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
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A Peek Into Key Predictions Ahead of Magna (MGA) Q4 Earnings
Magna International (MGA - Free Report) is scheduled to report fourth-quarter 2021 results on May 6, before the bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 83 cents per share and $8.94 billion, respectively.
This automotive equipment supplier’s third-quarter 2021 earnings lagged the Zacks Consensus Estimate and witnessed a year-over-year decline. Over the trailing four quarters, Magna surpassed the Zacks Consensus Estimate on two occasions for as many misses, with the average surprise being 8.3%.
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 has witnessed an upward revision of 2 cents in the past 30 days. The bottom-line projection calls for a year-over-year deterioration of 70.6%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year decline of 15.4%.
Factors at Play
Magna has been battling chip crunch-related headwinds, which are expected to weigh on fourth-quarter 2021 results. As a result of semiconductor chip shortages, production schedules of Magna’s customers’ have been unpredictable, resulting in labor and other operational inefficiencies at its facilities. Global light vehicle production for the fourth quarter declined 13% year over year. This is anticipated to have reduced the demand for Magna's products during the quarter to be reported, thereby resulting in lower year-over-year revenues across all segments.
The Zacks Consensus Estimate for fourth-quarter revenues and adjusted EBIT from the Body Exteriors & Structures segment is pegged at $3,624 million and $140 million, implying a year-over-year decline of 17.5% and 74.2%, respectively.
The consensus estimate for quarterly revenues and pretax profit from the Complete Vehicles segment stands at $1,504 million and $73 million, indicating a drop of 15% and 38.2%, respectively, on a year-over-year basis.
The Zacks Consensus Estimate for quarterly revenues and adjusted EBIT from the Seating Systems unit is pegged at $1,147 million and $19 million, indicating a decrease of 17.5% and 77.6%, respectively, from a year ago.
The consensus mark for revenues and adjusted EBIT from the Power & Vision unit is pegged at $2,782 million and $112 million, pointing to a year-over-year deterioration of 12.5% and 69%, respectively.
Magna’s upcoming results are likely to be negatively impacted by inflationary cost increases in production inputs including freight, labor and commodities. Elevated capital spending to evolve its business profile for incorporating technologically-advanced new products might have further impaired Magna’s quarterly performance.
Earnings Whispers
Our proven Zacks model does not conclusively predict 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. That is not the case here as elaborated below.
Earnings ESP: The company has an Earnings ESP of +3.03%. This is because the Most Accurate Estimate is pegged 2 cents above 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 currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for Magna, below we highlight three stocks from the auto space, which, according to our model, have the right combination of elements to surpass earnings estimates for the quarter to be reported:
Advance Auto Parts (AAP - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 14.
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $2.36 billion, respectively. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
Asbury Automotive (ABG - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 15.
The Zacks Consensus Estimate for Asbury’s to-be-reported quarter’s earnings and revenues is pegged at $5.86 per share and $2.45 billion, respectively. ABG surpassed earnings estimates in the last four quarters, with an average of 24.3%.
Sonic Automotive (SAH - Free Report) has an Earnings ESP of +8.11% and a Zacks Rank #1. The company is set to report fourth-quarter 2021 earnings on Feb 16.
The Zacks Consensus Estimate for Sonic’s to-be-reported quarter’s earnings and revenues is pegged at $1.85 per share and $3.20 billion, respectively. SAH surpassed earnings estimates in the last four quarters, with an average of 25.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.