Magna International (MGA) Tops Q4 EPS by 80c, Revenues Beat; Offers FY21 Revenue Guidance Above Consensus

Magna International (NYSE: MGA) reported Q4 EPS of $2.83, $0.80 better than the analyst estimate of $2.03. Revenue for the quarter came in at $10.57 billion versus the consensus estimate of $10.12 billion.

Fourth Quarter 2020 Highlights

• Sales of $10.6 billion increased 12%, compared to higher global light vehicle production of 4%
• Diluted earnings per share of $2.45, compared to $1.43 in the fourth quarter of 2019
• Adjusted diluted earnings per share of $2.83, more than double the fourth quarter of 2019
• Cash from operating activities of $2.3 billion, compared to $1.7 billion in the fourth quarter of 2019
• Raised quarterly cash dividend by 8% to $0.43 per share

“Magna navigated a challenging year from a position of strength attributable to our entrepreneurial spirit, market leading portfolio and healthy balance sheet. From the time COVID-19 first struck, our primary focus was on protecting the health, safety and economic well-being of our employees. Overall, I believe our second-half results demonstrate Magna’s resilience – we are emerging even stronger from the challenges we faced in 2020. Our outlook reflects a product strategy aligned with sustainability objectives, further growth driven by technologies that support the car of the future, margin expansion and continued strong free cash flow generation.” - Swamy Kotagiri, Magna's Chief Executive Officer

“In 2020, despite the severe decline in global vehicle production, Magna demonstrated the strength of its operating model. We took steps to conserve cash and reduce costs, while continuing to invest for the future. As vehicle production recovered in the second half of the year, we proved our ability to generate strong cash flow that, together with our balance sheet, position us to capitalize on future opportunities in mobility. Our dividend increase, the eleventh consecutive annual increase, reflects the ongoing confidence that management and our Board have in Magna’s future.” - Vince Galifi, Magna's Chief Financial Officer

GUIDANCE:

Magna International sees FY2021 revenue of $40-41.6 billion, versus the consensus of $38.45 billion.

For earnings history and earnings-related data on Magna International (MGA) click here.

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