Magna Q1 Profit Misses Market, Sales Beat; Cuts FY25 Margin View, Lifts Sales Forecast - Update

(RTTNews) - Canadian automotive parts maker Magna International Inc. (MGA), while reporting higher first-quarter profit, but below market view, on Friday maintained fiscal 2025 net income forecast. Further, the company trimmed margin view, but raised sales forecast above the Street view.

In pre-market activity on the NYSE, Magna shares were losing around 2.3 percent to trade at $34.20.

For fiscal 2025, the company continues to expect adjusted net income attributable of $1.3 billion to $1.5 billion.

Adjusted EBIT Margin is now expected to be in the range of 5.1 percent to 5.6 percent, lower than previous estimate of 5.3 percent to 5.8 percent.

Further, total annual sales are now expected to be in the range of $40.0 billion to $41.6 billion, higher than previous estimate of $38.6 billion to $40.2 billion.

Analysts on average had expect the company to record sales of $39.29 billion for the year. Analysts' estimates typically exclude special items.

Light Vehicle Production in North America is now projected to be 15.0 millions of units, lower than 15.1 millions of units a year ago.

The updated outlook excludes potential impacts of tariffs including on light vehicle production.

Further, the Board of Directors declared a first quarter dividend of $0.485 per Share, payable on May 30 to shareholders of record as of the close of business on May 16.

In the first quarter, Magna's earnings increased from the same period last year but missed the Street estimates.

The company's earnings came in at $146 million or $0.52 per share, significantly higher than $9 million or $0.03 per share last year.

Adjusted earnings were $219 million or $0.78 per share for the period, compared to $1.08 per share a year ago. Analysts had expected the company to earn $0.86 per share.

The company's sales for the period fell 8.2 percent to $10.069 billion from $10.970 billion last year. The Street was looking for sales of $9.73 billion.

Global light vehicle production decreased 3 percent, which included 8 percent and 5 percent declines in Europe and North America, respectively.

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