Magna International (NYSE:MGA) Shares Gap Up After Better-Than-Expected Earnings

Shares of Magna International Inc. (NYSE:MGA) (TSE:MG) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $57.82, but opened at $63.19. Magna International shares last traded at $68.3820, with a volume of 2,044,163 shares changing hands.

The company reported $2.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.78 by $0.40. Magna International had a net margin of 2.50% and a return on equity of 11.88%. During the same period last year, the firm earned $1.69 earnings per share. Magna International’s revenue for the quarter was up 2.1% on a year-over-year basis. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS.

Magna International News Summary

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: Q4 adjusted EPS and beat — Magna reported $2.18 EPS, topping consensus estimates and showing sizable year-over-year improvement, which drove investor optimism. Press Release
• Positive Sentiment: Raised FY2026 EPS guidance — Management set FY2026 EPS at $6.25–$7.25, well above consensus, signaling confidence in profitability and portfolio execution. Guidance Details
• Positive Sentiment: Improved adjusted operating performance and cash generation — Adjusted EBIT rose 18% with a 100 bps margin expansion; the company generated $2.0B cash from operations and $1.3B free cash flow, and raised the quarterly dividend. Performance & Outlook
• Neutral Sentiment: Top-line growth modest and revenue guidance roughly in line — Q4 sales rose ~2% YoY and the revenue outlook sits near consensus, so upside is more margin/earnings driven than revenue-driven. Revenue Notes
• Negative Sentiment: Large non‑cash impairment on the quarter — The results included a $615M non‑cash impairment that weighed on GAAP income (income from operations before tax of $114M and a modest GAAP net margin), which could cloud headline profitability metrics for some investors. Impairment Details

Analyst Ratings Changes

A number of research analysts have weighed in on MGA shares. Wall Street Zen raised shares of Magna International from a “buy” rating to a “strong-buy” rating in a research note on Monday, January 19th. Canadian Imperial Bank of Commerce lifted their price objective on shares of Magna International from $50.00 to $56.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Wells Fargo & Company upped their price objective on Magna International from $50.00 to $58.00 and gave the company an “equal weight” rating in a research note on Monday, January 12th. Citigroup increased their price target on Magna International from $49.00 to $55.00 and gave the company a “neutral” rating in a research note on Friday, November 14th. Finally, BMO Capital Markets increased their price objective on shares of Magna International from $49.00 to $52.00 and gave the company an “outperform” rating in a research report on Monday, November 3rd. Three research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Magna International currently has a consensus rating of “Hold” and an average price target of $52.80.

Institutional Investors Weigh In On Magna International

Several institutional investors have recently made changes to their positions in MGA. ARGA Investment Management LP raised its holdings in Magna International by 1.1% in the 4th quarter. ARGA Investment Management LP now owns 4,193,129 shares of the company’s stock valued at $223,512,000 after acquiring an additional 44,996 shares in the last quarter. Geode Capital Management LLC raised its position in Magna International by 6.8% in the fourth quarter. Geode Capital Management LLC now owns 2,426,843 shares of the company’s stock valued at $128,774,000 after purchasing an additional 154,710 shares during the last quarter. Hillsdale Investment Management Inc. raised its holdings in Magna International by 2.3% in the 4th quarter. Hillsdale Investment Management Inc. now owns 725,425 shares of the company’s stock valued at $38,741,000 after buying an additional 16,255 shares during the last quarter. QV Investors Inc. increased its holdings in Magna International by 0.6% in the second quarter. QV Investors Inc. now owns 651,377 shares of the company’s stock valued at $25,129,000 after purchasing an additional 3,912 shares during the period. Finally, AGF Management Ltd. bought a new position in Magna International during the third quarter worth $14,191,000. 67.49% of the stock is currently owned by institutional investors.

Magna International Price Performance

The company has a market capitalization of $18.83 billion, a price-to-earnings ratio of 18.45 and a beta of 1.50. The business has a 50 day moving average price of $53.82 and a 200-day moving average price of $48.83. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.83 and a current ratio of 1.18.

About Magna International

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna’s broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.