Magna International IncMGA
▲ PositiveCapitalrelevance
Raises full-year margin, EPS and cash flow guidance; strong balance sheet supports buybacks.
Impact on stocks 1
Electrification & Mobility
Magna International IncMagna International raised its full-year profitability and cash-flow guidance, now targeting roughly 6.5% margins, $7 earnings per share and $1.8 billion in free cash flow. Speaking at a JPMorgan conference, CFO Phil Fracassa said the EPS outlook represents growth of more than 20% despite a flattish industry production environment. The company lowered its sales outlook to account for currency effects and the earlier-than-expected divestiture of its Lighting and Rooftop Systems businesses. Magna expects sequential margin and earnings improvements in the second half, supported by operational-excellence initiatives, customer commercial recoveries and digital factory improvements. The company also said its strong balance sheet and free-cash-flow outlook support potentially more than $1.5 billion in share repurchases.
Magna International IncRaises full-year margin, EPS and cash flow guidance; strong balance sheet supports buybacks.