Market Overview

Earnings Outlook For Magna International

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On Friday, November 06, Magna International (NYSE: MGA) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Magna International modeled for quarterly EPS of $1.35 on revenue of $9.08 billion. In the same quarter last year, Magna International announced EPS of $1.41 on revenue of $9.32 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Friday, earnings would be down 4.26%. Revenue would be down 2.56% from the same quarter last year. Here is how the Magna International's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -1.63 0.81 1.33 1.34
EPS Actual -1.71 0.86 1.41 1.41
Revenue Estimate 4.14 B 8.50 B 9.17 B 9.32 B
Revenue Actual 4.29 B 8.66 B 9.39 B 9.32 B

Stock Performance

Over the last 52-week period, shares are down 4.95%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Magna International is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: Earnings