- Magna International Inc. (NYSE:MGA) reported an earnings per share (EPS) of $0.75, missing the estimated $0.90, reflecting a negative surprise of 13.33%.
- The company’s revenue was $10.07 billion, surpassing expectations but showing a decrease from the previous year’s $10.97 billion.
- Magna’s financial health indicators include a price-to-earnings (P/E) ratio of approximately 9.61 and a debt-to-equity ratio of approximately 0.61.
Magna International Inc. (NYSE:MGA) is a leading global automotive supplier, providing a wide range of products and services to the automotive industry. The company operates in the Zacks Automotive – Original Equipment industry and is known for its innovative solutions in vehicle engineering and manufacturing. Magna competes with other major players in the automotive sector, striving to maintain its position through strategic initiatives and financial performance.
On May 2, 2025, Magna reported earnings per share (EPS) of $0.75, which was below the estimated $0.90. This earnings miss reflects a negative surprise of 13.33%, as highlighted by Zacks. The company’s EPS also declined from $1.08 in the same quarter last year, indicating challenges in maintaining profitability. Despite this, Magna’s revenue for the quarter was $10.07 billion, surpassing the Zacks Consensus Estimate by 5.70%.
Magna’s revenue performance, although exceeding expectations, showed a decrease from the $10.97 billion reported in the previous year. The company experienced an 8% decline in sales, amounting to $10.1 billion, which correlates with a 3% decline in global light vehicle production. This decline was particularly notable in Europe and North America, with reductions of 8% and 5%, respectively. Despite these challenges, Magna’s strong incremental margins from better-than-anticipated vehicle production helped mitigate the impact.
The company’s financial health is reflected in its valuation metrics. Magna has a price-to-earnings (P/E) ratio of approximately 9.61, indicating the market’s valuation of its earnings. The price-to-sales ratio stands at about 0.22, suggesting that investors are paying 22 cents for every dollar of the company’s sales. Additionally, the enterprise value to sales ratio is approximately 0.36, reflecting the company’s total valuation relative to its sales.
Magna’s financial stability is further supported by its debt-to-equity ratio of approximately 0.61, indicating a moderate level of debt relative to equity. The current ratio of about 1.08 suggests that the company has a slightly higher level of current assets compared to its current liabilities, which can be a sign of short-term financial health. Despite the earnings miss, Magna returned $187 million to shareholders through dividends and share repurchases, demonstrating its commitment to shareholder value.
