Wall Street analysts estimate a 9.8% increase in EPS for Magna International Inc. (NYSE:MGA) for the upcoming quarterly earnings.
The company’s revenue is projected to decline by 1.4%, reaching approximately $10.3 billion.
Magna’s financial metrics, including a P/E ratio of 10.41 and a debt-to-equity ratio of 0.62, highlight its market valuation and financial health.
Magna International Inc. (NYSE:MGA) is a leading global automotive supplier, offering a wide array of products and services to the automotive industry. The company competes with major automotive suppliers like Continental AG and Bosch, operating across various segments such as body exteriors and structures, power and vision, seating systems, and complete vehicle solutions.
MGA is set to release its quarterly earnings on February 14, 2025. Wall Street analysts estimate earnings per share (EPS) to be $1.46, marking a 9.8% increase from the previous year. Despite this positive outlook for earnings, the company’s revenue is projected to decline by 1.4%, reaching approximately $10.3 billion, as highlighted by the Zacks Consensus Estimate.
Over the past 30 days, there has been a 1.5% downward revision in the consensus EPS estimate for MGA. Such revisions are crucial as they can influence investor behavior and impact the stock’s short-term price performance. Empirical studies show a strong correlation between trends in earnings estimate revisions and stock price movements.
Magna’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of about 10.41, indicating how the market values its earnings. The price-to-sales ratio is approximately 0.26, suggesting a relatively low valuation compared to its sales. Additionally, the enterprise value to sales ratio is around 0.41, reflecting the company’s total valuation in relation to its revenue.
Magna’s financial health is further illustrated by its debt-to-equity ratio of approximately 0.62, indicating a moderate level of debt relative to its equity. The current ratio stands at about 1.14, suggesting that the company has a reasonable level of liquidity to cover its short-term liabilities. These metrics, along with the upcoming earnings report, will be crucial in determining the stock’s immediate price change and future earnings expectations.
