Earnings Review and Free Research Report: Magna Reported Record Sales and Earnings
Research Desk Line-up: Commercial Vehicle Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 28, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Magna International Inc. (NYSE: MGA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MGA, following the Company's announcement of its second quarter fiscal 2017 financial results on August 11, 2017. The automotive supply Company outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Auto Parts Wholesale industry. Pro-TD has currently selected Commercial Vehicle Group, Inc. (NASDAQ: CVGI) for due-diligence and potential coverage as the Company reported on August 07, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Commercial Vehicle when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MGA; also brushing on CVGI. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
Magna delivered all-time quarter record sales of $9.68 billion for the second quarter ended June 30, 2017, an increase of 3% over sales of $9.44 billion in Q2 2016. The Company's y-o-y growth was achieved despite North American and European light vehicle production declining by 3% and 1%, respectively, on a y-o-y basis. Magna's sales exceeded analysts' expectations of $9.43 billion.
During Q2 2017, Magna's complete vehicle assembly sales increased 14% to $743 million, largely reflecting the start of production of the BMW 5-Series at the Company's assembly facility in Graz, Austria, partially offset by the end of production of the MINI Countryman and Paceman in 2016.
For Q2 2017, Magna's cost of goods sold increased $232 million to $8.28 billion compared to $8.05 billion for Q2 2016, primarily as a result of higher material; overhead and labor costs associated with the increase in sales; acquisitions subsequent to Q2 2016 which increased cost of goods sold by $36 million; higher commodity costs; and higher pre-operating costs incurred at new facilities.
During Q2 2017, Magna's income from operations before income taxes was $762 million, down 1% compared to $767 million in Q2 2016. During Q2 2017, the Company's adjusted EBIT decreased 2% to $776 million compared to $789 million for Q2 2016.
Net income attributable to Magna International was a record $561 million for Q2 2017, an increase of 1% compared to net income of $548 million in Q2 2016. The Company's diluted earnings per share increased $0.07 to $1.48 per share in the reported quarter compared to earnings of $1.41 per diluted share in the prior year's same quarter. Magna stated that other expense, net, after tax, negatively impacted diluted earnings per share by $0.01 in Q2 2017. Excluding this impact, diluted earnings per share increased $0.08, and also topped Wall Street's estimates of $1.47 per share.
Segment Result
Magna's external production sales in North America increased 2% to $5.00 billion for Q2 2017 compared to $4.90 billion for Q2 2016, primarily as a result of the launch of new programs during or subsequent to Q2 2016. The Company's adjusted EBIT in North America decreased $6 million to $538 million for the reported quarter compared to $544 million for the year ago corresponding period.
For Q2 2017, Magna's external production sales in Europe decreased 1% to $2.46 billion compared to $2.49 billion for Q2 2016. The Company's complete vehicle assembly sales increased 14%, or $91 million, to $743 million for the reported quarter compared to $652 million for the year ago same period, while assembly volumes decreased 17%, or 4.4 thousand units.
Cash Matters
During Q2 2017, Magna generated cash from operations of $948 million before changes in operating assets and liabilities, and invested $391 million in operating assets and liabilities. The Company's total investment activities for the reported quarter were $563 million, including $420 million in fixed asset additions and $143 million in investments, other assets, and intangible assets. During Q2 2017, Magna's cash resources including restricted cash equivalents decreased by $152 million to $876 million as a result of the cash used for investing and financing activities, partially offset by cash provided from operating activities. Additionally, the Company had term and operating lines of credit totaling $2.96 billion of which $1.90 billion was unused and available.
During the three months ended June 30, 2017, Magna repurchased 8.5 million shares for $383 million. The Company's Board of Directors declared a quarterly dividend of $0.275 with respect to its outstanding common shares for the quarter ended June 30, 2017. This dividend is payable on September 15, 2017, to shareholders of record on September 01, 2017.
Stock Performance
Magna's share price finished last Friday's trading session at $47.76, marginally declining 0.29%. A total volume of 962.18 thousand shares have exchanged hands. The Company's stock price surged 6.16% in the last three months, 9.17% in the past six months, and 18.89% in the previous twelve months. Additionally, the stock rallied 10.05% since the start of the year. Shares of the Company have a PE ratio of 8.62 and have a dividend yield of 2.30%. The stock currently has a market cap of $17.76 billion.
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