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  5. MG: Your thoughts please on the quarter? [Magna International Inc.]
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Q: Your thoughts please on the quarter?

Thx

Asked by blake on August 04, 2023
5i Research Answer:

EPS of $2.0 beat estimates of $1.63 and revenues of $14.68B beat estimates of $13.86B. Sales grew by 17%, outpacing the 15% rise in global light vehicle production. Its EPS grew significantly, reflecting its improved financial metrics and management raised its outlook for total sales, its Adjusted EBIT margin, and Adjusted net income. Its increased guidance and outlook for its operating segments is encouraging. The company took on additional debt in the quarter to fund part of its acquisitions, but free cash flow continues to be decent. Like a number of companies this quarter, MG ran up into its earnings, and it is now down slightly following the results as much was priced into the event. We like the momentum and trajectory that MG has and overall its financials are improving here.