Shares of Magna International MGA gained 11.7% since the company reported third-quarter 2024 results. The auto equipment provider reported adjusted earnings of $1.28 per share, which declined from the year-ago quarter’s $1.46 and missed the Zacks Consensus Estimate of $1.48. 

Net sales declined 3.8% year over year to $10.3 billion and missed the Zacks Consensus Estimate of $10.6 billion.

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Magna International Inc. Price, Consensus and EPS Surprise

Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote

Segmental Performance

The Body Exteriors & Structures segment’s revenues were $4.04 billion, down 4% year over year. This can be attributed to the end of production of certain programs, lower production on a few programs, divestitures and customer price concessions. Revenues also lagged the Zacks Consensus Estimate of $4.32 billion. The segment reported an adjusted EBIT of $273 million, down from $358 million recorded in the year-ago period. The metric also missed the Zacks Consensus Estimate of $345 million because of higher production input costs net of customer recoveries, reduced earnings on lower sales, supply chain premiums and higher pre-operating costs.

The Power & Vision segment’s revenues increased 2% year over year to $3.84 billion on the launch of new programs, customer price increases, favorable foreign exchange translation and benefits from acquisitions. The metric also surpassed the Zacks Consensus Estimate of $3.83 billion. Segmental adjusted EBIT rose from $221 million to $279 million due to an increase in earnings on higher sales. The metric also topped the Zacks Consensus Estimate of $228 million. 

Revenues from the Seating Systems segment fell 10% year over year to $1.38 billion and missed the Zacks Consensus Estimate of $1.46 billion due to lower production and end of production. Segmental adjusted EBIT fell from $70 million to $51 million due to reduced earnings on lower sales. The metric also missed the Zacks Consensus Estimate of $54 million.

The Complete Vehicles segment’s revenues decreased 2% year over year to $1.16 billion due to lower assembly volumes. The metric, however, beat the Zacks Consensus Estimate of $1.13 billion. The segment reported an adjusted EBIT of $27 million against an adjusted EBIT loss of $5 million reported in the year-ago period but outpaced the Zacks Consensus Estimate of $8.98 million.

Financials

Magna had $1.06 billion in cash and cash equivalents as of Sept. 30, 2024, down from $1.2 billion as of Dec. 31, 2023. As of Sept. 30, 2024, long-term debt was $4.91 billion, up from $4.18 billion as of Dec. 31, 2023.

In the reported quarter, cash provided from operating activities totaled $727 million, down from the year-ago figure of $797 million.

The company declared a third-quarter dividend of 47.5 cents per common share. The dividend will be paid on Nov. 29, 2024, to shareholders of record as of Nov. 15, 2024.