Magna raises annual profit target on improved auto parts demand from new launches
MGA•Quarterly results top estimates
- Magna reported an adjusted profit of $1.86 per share in the quarter to June 30, up from $1.44 a year before and above analysts' expectation of a $1.50 profit per share, according to data compiled by LSEG.
- Quarterly sales grew 3.3% to $10.98 billion.
- The company, however, lowered its annual sales target to a range of $41.3 billion to $42.5 billion from $41.5 billion to $43.1 billion it had previously forecast.
New launches offset softer vehicle production
- While many automakers have scaled back on their electrification programs as global demand mellows, Magna said it was aided by the new launches, which helped offset lower global light vehicle production.
- Magna now expects 2026 adjusted profit to range between $6.70 and $7.30 per share, compared with an earlier projection of $6.25 to $7.25 per share.
- The midpoint of the new range is above analysts' expectation of a $6.73 adjusted profit per share, according to data compiled by LSEG.
