Why Is Automotive Supplier Magna Stock Falling Today?
Portfolio Pulse from Vandana Singh
Magna International Inc (NYSE:MGA) reported Q4 2023 sales of $10.45 billion, nearly meeting consensus estimates. Sales rose 9% Y/Y, outpacing global light vehicle production growth. Adjusted EBIT and net income also increased, but adjusted EPS of $1.33 missed estimates. The company declared a dividend increase and provided optimistic sales and production forecasts for FY 2024 and 2026. Despite this, MGA shares fell 6.08% to $55.11.
February 09, 2024 | 3:24 pm
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Magna International reported solid Q4 2023 results with sales and adjusted EBIT growth, alongside a dividend increase. However, adjusted EPS missed estimates, and shares fell 6.08%.
Despite reporting growth in sales and earnings, and increasing its dividend, Magna's stock fell due to the adjusted EPS missing consensus estimates. This suggests that the market had higher expectations for the company's profitability, leading to a negative short-term impact on the stock price.
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IMPORTANCE 90
RELEVANCE 100