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Magna International Offers Financial Outlook for 2017 & 2019
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Share price of Magna International Inc. (MGA - Free Report) increased to $45.62 on Jan 11 after the company released its 2017 financial numbers. The company has assumed that foreign exchange rates will remains close to 2016-end levels.
For 2017, Magna International projects External Production segment revenues in the band of $30.4–$31.7 billion. Revenues from North America are estimated in the range of $19.2–$19.8 billion. Revenues from Europe are likely to be within $8.7–$9.1 billion. Asia is expected to record $2.2–$2.4 billion in revenues. Revenues from the rest of the world are forecasted between $0.3 billion and $0.4 billion.
For 2017, Magna International projects revenues at the Complete Vehicle Assembly segment in the range of $2.7–$3 billion, higher than the 2016 guidance of $2–$2.2 billion. Thus, the company anticipates total revenue in the range of $36–$37.7 billion, higher than the 2016 guidance of $35.8–$37 billion.
Magna International expects light vehicle production of around 17.7 million units in North America this year. Production is anticipated at around 21.7 million units in Europe.
Magna International further expects tax rate in the range of 25%–26%, while capital expenditures are anticipated to be $2 billion. For 2017, EBIT margin is projected at about 8%.
The company also provided a financial outlook for 2019. Revenues at the External Production segment are expected in the band of $34.1–$36 billion. Revenues from North America are likely to be around $20.4–$21.2 billion. Revenues from Europe are estimated within the range of $10.1–$10.7 billion. Asia is likely to record revenues in the range of $3.2–$3.5 billion. Revenues from rest of the world are likely to be between $0.4 billion and $0.6 billion.
For 2019, Magna International projects revenues at the Complete Vehicle Assembly segment in the range of $6.6–$7.1 billion. Thus, the company anticipates total revenue in the band of $43.5–$46.2 billion.
Magna International expects light vehicle production of around 18.4 million units in North America in 2019. Production is anticipated at around 22.5 million units in Europe.
The company also expects better sales and higher margins to generate strong free cash flow over the next three years.
In the last one year, Magna International’s share price increased 25.1% while the Zacks categorized Auto/Truck Original Equipment industry saw a 27.4% increase. The share price rally was driven by acquisitions, rise in global light-vehicle production and expansion in emerging markets.
Zacks Rank & Key Picks
Magna International currently carries a Zacks Rank #4 (Sell).
Fox Factory has an expected earnings growth rate of around 16.6% for the current year.
Oshkosh has a long-term growth rate of 8.4% while the same for GKN is pegged at 6.3%.
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Magna International Offers Financial Outlook for 2017 & 2019
Share price of Magna International Inc. (MGA - Free Report) increased to $45.62 on Jan 11 after the company released its 2017 financial numbers. The company has assumed that foreign exchange rates will remains close to 2016-end levels.
For 2017, Magna International projects External Production segment revenues in the band of $30.4–$31.7 billion. Revenues from North America are estimated in the range of $19.2–$19.8 billion. Revenues from Europe are likely to be within $8.7–$9.1 billion. Asia is expected to record $2.2–$2.4 billion in revenues. Revenues from the rest of the world are forecasted between $0.3 billion and $0.4 billion.
For 2017, Magna International projects revenues at the Complete Vehicle Assembly segment in the range of $2.7–$3 billion, higher than the 2016 guidance of $2–$2.2 billion. Thus, the company anticipates total revenue in the range of $36–$37.7 billion, higher than the 2016 guidance of $35.8–$37 billion.
Magna International expects light vehicle production of around 17.7 million units in North America this year. Production is anticipated at around 21.7 million units in Europe.
Magna International further expects tax rate in the range of 25%–26%, while capital expenditures are anticipated to be $2 billion. For 2017, EBIT margin is projected at about 8%.
The company also provided a financial outlook for 2019. Revenues at the External Production segment are expected in the band of $34.1–$36 billion. Revenues from North America are likely to be around $20.4–$21.2 billion. Revenues from Europe are estimated within the range of $10.1–$10.7 billion. Asia is likely to record revenues in the range of $3.2–$3.5 billion. Revenues from rest of the world are likely to be between $0.4 billion and $0.6 billion.
For 2019, Magna International projects revenues at the Complete Vehicle Assembly segment in the range of $6.6–$7.1 billion. Thus, the company anticipates total revenue in the band of $43.5–$46.2 billion.
Magna International expects light vehicle production of around 18.4 million units in North America in 2019. Production is anticipated at around 22.5 million units in Europe.
The company also expects better sales and higher margins to generate strong free cash flow over the next three years.
Magna International, Inc. Price
Magna International, Inc. Price | Magna International, Inc. Quote
Price Performance
In the last one year, Magna International’s share price increased 25.1% while the Zacks categorized Auto/Truck Original Equipment industry saw a 27.4% increase. The share price rally was driven by acquisitions, rise in global light-vehicle production and expansion in emerging markets.
Zacks Rank & Key Picks
Magna International currently carries a Zacks Rank #4 (Sell).
Better-ranked companies in the auto space include Oshkosh Corporation (OSK - Free Report) , Fox Factory Holding Corp (FOXF - Free Report) and GKN plc . All the stocks sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox Factory has an expected earnings growth rate of around 16.6% for the current year.
Oshkosh has a long-term growth rate of 8.4% while the same for GKN is pegged at 6.3%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>