MGA Earnings Prediction
The chart below shows how MGA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MGA sees a +2.60% change in stock price 10 days leading up to the earnings, and a +1.19% change 10 days following the report. On the earnings day itself, the stock moves by -1.51%. This data can give you a slight idea of what to expect for the next quarter's release.
MGA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
10.63B
1.66%
3.39%
Gross Margin
10.83%
3.84%
7.02%
Operating Margin
3.65%
-27.15%
-32.16%
Net Margin
2.20%
-22.81%
-55.47%
EPS
0.71
-25.26%
-57.74%
No Data Available
MGA Earnings Analysis
Magna International Inc Corporation (MGA.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Magna International Inc. reported an EPS of $1.69, exceeding expectations of $1.46, indicating strong financial performance.
Q4 Sales Growth: Sales for Q4 2024 increased to $10.6 billion, reflecting a 2% growth over market despite challenges in the industry.
EBIT Margin Improvement: EBIT margin improved by 120 basis points to 6.5%, showcasing effective cost control and operational excellence initiatives.
Free Cash Flow Surge: Free cash flow generation exceeded expectations, with over $1 billion generated in Q4 2024, significantly higher than $472 million in Q4 2023.
Shareholder Value Commitment: The company returned $746 million to shareholders through dividends and share repurchases, demonstrating commitment to shareholder value.
China Sales Growth: Sales in China grew by 15%, outpacing the market and reflecting strong demand from domestic OEMs.
Customer Awards Recognition: Magna received 109 customer awards in recognition of quality and operational performance, highlighting its reputation in the industry.
Award for Innovation: The company won both PACE and PACEpilot awards in 2024, underscoring its innovation and technological advancements.
Margin Expansion Initiatives: Operational excellence activities contributed to a 40 basis point margin expansion in 2024, with expectations for further improvements in the coming years.
Financial Stability Indicators: Magna's balance sheet remains strong with $4.5 billion in liquidity and an adjusted debt to adjusted EBITDA ratio of 1.77, indicating financial stability.
Negative
Sales Stagnation Analysis: Sales for 2024 were essentially level with 2023 despite lower volumes in North America and Europe, indicating stagnation in growth.
EPS Decline Despite Q4 Beat: EPS for 2024 was down slightly compared to 2023, suggesting a decline in profitability despite beating expectations in Q4.
Production Challenges Impacting Sales: The company faced lower-than-expected vehicle production, particularly in North America and Europe, which negatively impacted sales and margins.
Bankruptcy Impact on Sales: The bankruptcy of Fisker resulted in a loss of approximately $400 million in expected sales, highlighting vulnerability to customer stability.
Global Vehicle Production Decline: The company anticipates a 2% decline in weighted global vehicle production in 2025, indicating ongoing challenges in the market.
Rising Input Costs Impact Margins: There is an expectation of further net input cost increases, predominantly related to higher labor rates, which could pressure margins.
Commercial Settlement Concerns: The company noted that they negotiated an unusually high level of commercial settlements in 2024, which may not be sustainable in the future, indicating potential revenue challenges ahead.
Weak Q1 Outlook: The first quarter of 2025 is expected to be lower than Q1 2024, suggesting a weak start to the year.
Macro Challenges Impacting Sales: The company is facing macro challenges, including weak light vehicle production and a strong U.S. dollar, which could reduce reported sales and earnings.
MGA FAQs
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MGA Earning Call Sentiment
Magna International Inc. (NYSE:MGA) Q4 2024 Earnings Call Transcript
MGA.N
-2.53%Positive
The earnings call summary shows strong financial performance with improved EBIT margins, EPS, and free cash flow, alongside a solid shareholder return plan. Although sales guidance was lowered, the company's operational efficiencies and balance sheet management are positive indicators. The Q&A section highlighted management's confidence in future margin expansion and cash flow improvements, despite acknowledging some uncertainties. The positive aspects, such as strong financial metrics and shareholder returns, outweigh the negatives, suggesting a positive stock price movement over the next two weeks.
