Shares of Canadian auto-parts manufacturer, Magna International (NYSE:MGA), witnessed a notable surge Friday, rising by 10% to 74.14 Canadian dollars ($53.97). This substantial increase was largely due to the company's robust Q3 earnings.
Magna International reported a net income of $394 million or $1.37 per share, marking a significant rise from the previous year's figure of $289 million or $1 per share. After accounting for one-off items and costs, the company's adjusted earnings reached $1.46 per share, surpassing analysts' prediction of $1.31 per share.
Sales also exceeded expectations, with the company reporting a total of $10.69 billion, outperforming the forecasted rise to $10.28 billion. This represents an increase from last year's sales figure of $9.27 billion.
The company's strong financial performance was largely attributed to an increase in global light vehicle production. Notably, North America and Europe witnessed increases of 7% and 14%, respectively. Despite this global uptick in production, China experienced a 2% decrease.
Overall, Magna International's robust Q3 earnings and higher-than-expected sales have contributed to a positive market response, as evidenced by the surge in its share price on Friday.
InvestingPro Insights
According to InvestingPro's real-time data, Magna International boasts a market cap of 15.69B USD, with a P/E ratio of 17.21. The company's revenue growth has been accelerating, as evidenced by a 12.37% growth in the last twelve months as of Q2 2023. Furthermore, the company has maintained a solid dividend growth, raising its dividend for 13 consecutive years.
Two key InvestingPro Tips that align with this article are the company's expected net income growth and its status as a prominent player in the Automobile Components industry. These tips underscore the company's strong financial performance and its significant role within its industry sector. For further insights, InvestingPro offers a plethora of additional tips related to Magna International.
In terms of the company's stock, its price has fallen significantly over the last three months. Despite this, the stock is trading at a low P/E ratio relative to near-term earnings growth, suggesting potential value for investors.
Overall, the data and tips from InvestingPro provide a comprehensive understanding of Magna International's financial health and market position, enriching the overall value of this article.
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