Magna International (NYSE: MGA) reported Q1 EPS of $1.86, $0.29 better than the analyst estimate of $1.57. Revenue for the quarter came in at $10.18 billion versus the consensus estimate of $9.53 billion.

• Sales of $10.2 billion increased 18%
• Global light vehicle production was up 18% driven by an 87% increase in China
• Income from operations before income taxes increased 109%
• Adjusted EBIT was up 91%
• Diluted earnings per share and adjusted diluted earnings per share increased 136% and 116%, respectively
• Increased 2021 outlook to reflect modestly higher sales and Adjusted EBIT margin expectations

“We generated strong earnings in the first quarter of 2021 despite industry supply constraints that impacted OEM production schedules. We expect supply constraints to continue through at least the second quarter. As we look past the near-term industry headwinds, we see considerable growth opportunities for Magna in the coming years.” - Swamy Kotagiri, Magna’s Chief Executive Officer

GUIDANCE:

Magna International sees FY2021 revenue of $40.2-41.8 billion, versus the consensus of $40.65 billion.

“Following our solid first quarter results, we have increased our 2021 outlook for sales and Adjusted EBIT margin. This is despite lower expected light vehicle production in North America, our largest market. Our increased outlook mainly reflects continued sales growth in China, ongoing strong operating performance and higher equity income than previously expected. We anticipate translating the higher expected sales and margin into increased free cash flow(2).” - Vince Galifi, Magna’s Chief Financial Officer

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