Magna Swings To Profit In Q2, Beats Estimates; Lifts FY23 Outlook

(RTTNews) - Magna International Inc. (MGA, MG.TO), an auto parts manufacturer, on Friday reported earnings for the second quarter, compared to loss for the same period prior year. Adjusted earnings and top line beat market estimates. The company also raised its fiscal 2023 earnings and revenue guidance.

The company reported earnings of $339 million or $1.18 per share, compared to a loss of $156 million or $0.54 loss per share of last year.

Adjusted earnings were $1.50 per share, compared to $0.83 per share a year ago. Fifteen analysts polled by Thomson Reuters expected the company to report earnings of $1.23 per share for the quarter. Consensus estimates typically exclude one-time items.

Adjusted EBIT was $603 million, compared to $358 million in the prior year.

Revenues increased 17 percent to $10.982 billion from $9.362 billion previous year on higher global production. The Street estimate for revenue was $10.36 billion for the quarter.

Additionally, the company declared a quarterly dividend of $0.46 per share, payable on September 1, to shareholders of record on August 18.

Looking ahead to fiscal 2023, the company now expects adjusted net income in the range of $1.4 billion-$1.6 billion, up from the previous range of $1.3 billion-$1.5 billion.

Revenue is now expected to be in the range of $41.9 billion-$43.5 billion. The previous range was between $40.2 billion and $41.8 billion. The Street estimate is $41.74 billion.

In pre-market activity, shares of Magna are trading at $63.30, up 0.38% on the New York Stock Exchange.