Magna Hits New 52-Week High - Analyst Blog
March 28 2013 - 9:30AM
Zacks
Shares of Magna International Inc. (MGA)
reached new 52-week high of $58.39 on Mar 27, a week after it
reached its previous high of $58.08. Shares of the company have
been escalating following its impressive fourth quarter results,
raised dividend and promising guidance.
Aurora, Canada-based Magna International is a leading manufacturer
and supplier of automotive components. The company designs,
develops and manufactures automotive systems, assemblies, modules
and components, besides engineering and assembling complete
vehicles, primarily for sale to original equipment manufacturers
(OEMs) of cars and light trucks. It has a market cap of $13.5
billion.
Magna reported a 12.9% rise in earnings per share to $1.49 in the
fourth quarter of 2012 from $1.32 in the year-ago quarter and
outpaced the Zacks Consensus Estimate of $1.14. Revenues went up
10.8% to $8.03 billion in the reported quarter, exceeding the Zacks
Consensus Estimate of $7.75 billion.
The increase in revenues was attributable to improvement in North
American and Rest of World (ROW) production sales and higher
tooling, engineering and other sales together with improved
complete vehicle assembly sales.
The board of directors of the company declared a 16% rise in
quarterly dividend to 32 cents per share, reflecting strong
performance of the company.
Magna expects higher sales in 2013. The company foresees total
revenue between $32.0 billion and $33.4 billion for the year, up
from $30.8 billion in 2012.
Magna has projected revenues in the External Production segment
between $27.0 billion and $28.0 billion for the year compared with
$26.0 billion in 2012. Complete Vehicle Assembly revenues are
projected in the range of $2.6 billion to $2.9 billion compared
with $2.6 billion in 2012.
Currently, Magna retains a Zacks Rank #3 (Hold). While we remain on
the sidelines about Magna, stocks from the same industry that
warrant a look include Visteon Corp. (VC),
Gentherm Incorporated (THRM) and Denso
Corp. (DNZOY). All of them carry a Zacks Rank #1 (Strong
Buy).
DENSO CORP (DNZOY): Get Free Report
MAGNA INTL CL A (MGA): Free Stock Analysis Report
GENTHERM INC (THRM): Free Stock Analysis Report
VISTEON CORP (VC): Free Stock Analysis Report
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