Strong Sales but Lagging Expectations
Friday, Magna International Inc MGA reported fourth-quarter 2023 sales of $10.45 billion, almost in line with the consensus of $10.46 billion.
Sales increased 9% Y/Y, compared to a 7% increase in global light vehicle production, including 5%, 7%, and 12% higher production in North America, Europe, and China, respectively.
Sales increased by 4%, excluding foreign currency translation and acquisitions net of divestitures.
Factors at Play
In addition to higher global vehicle production, the company says sales benefitted from the launch of new programs and acquisitions net of divestitures, partially offset by the negative impact of lost vehicle production as a result of the UAW labor strikes at certain customers during the fourth quarter of 2023, which negatively impacted sales by approximately $275 million.
Adjusted EBIT increased to $558 million in the fourth quarter of 2023 compared to $367 million in the fourth quarter of 2022, reflecting productivity and efficiency improvements. Adjusted net income attributable to Magna International increased $113 million in the fourth quarter of 2023 compared to the fourth quarter of 2022.
Adjusted diluted earnings per share was $1.33, up from $0.94 a year ago, below the consensus estimate of $1.48.
Dividend and Guidance
Magna declared a fourth-quarter dividend of $0.475 per share, up 3%, representing 14th consecutive year of fourth-quarter dividend increases. The dividend is payable on March 8, with a record date of February 23.
Magna forecasts fiscal year 2024 sales of $43.8 billion-$45.4 billion versus a consensus of $44.97 billion. The company sees adjusted net income of $1.6 billion-$1.8 billion and adjusted EBIT margin of 5.4%-6.0%.
Newegg Commerce, Inc., a pioneer in computer and technology products, has set the stage for a tech extravaganza with its forthcoming FantasTech II Sale. Scheduled to run from October 7 to October 11, this sale event promises substantial markdowns on a plethora of tech products - from cutting-edge laptops, computer components, gaming peripherals, and smart home gadgets, to its exclusive line of ABS Gaming Desktops. Proudly assembled by Newegg, the array of items on sale caters to both average consumers and tech connoisseurs alike, making it one of the must-sees of the year.
(Graphic: Business Wire)
Newegg's VP of Product Management, Jim Tseng, expressed his elation as they commence the fourth quarter with a bang. The fervor around their first FantasTech Sale, which encompassed unbeatable deals across over 50 categories, has set the bar high for their upcoming event. Tseng underlined the significance of this sale by stressing how customers need not postpone their shopping spree until the holiday season arrives. The time is ripe to fulfill tech needs, as per Tseng.
Extending their returns policy for the holiday season, Newegg has also partnered with Affirm to unlock extra savings for customers. This collaboration aims to provide users with an optimal period for purchasing or constructing their dream PCs.
Essential Sale Details:Sale Dates: October 7 – October 11
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Exciting Deals in Tech WorldExploring Unmissable Tech DealsFor 2024, Magna sees Light Vehicle Production of 15.7 million, 17.4 million, and 28.3 million in North America, Europe, and China, respectively.
For the fiscal year 2026, the company expects sales of $48.8 billion-$51.2 billion, with an adjusted EBIT margin of 7.0%-7.7%. For 2026, Light Vehicle Production is expected to be 16.1 million, 17.3 million, and 30.6 million in North America, Europe, and China, respectively.
Stock Reaction
MGA shares are down 6.08% at $55.11 on the last check Friday.
Photo via Wikimedia Commons
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