-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Magna International (MGA) posted Q1 adjusted EPS of $1.38 vs. $0.78 (+77%), well ahead of the $1.01 consensus, owing to much stronger-than-expected sales and margins, as revenue rose 3.1% to $10.38B ($110M above consensus) and adjusted EBIT margin expanded 190 bps to 5.4% (120 bps above consensus). MGA lowered 2026 revenue guidance to $41.5B-$43.1B from $41.9B-$43.5B (current consensus: $42.4B). The only other change to previous guidance was a reduction in its net interest expense expectation to $165M from $180M. Other prior guidance was unchanged. While the company did not raise full-year EPS guidance, we think a raise is now more likely given the magnitude of the beat, although we think management's caution is understandable given current macro uncertainties. Given MGA's broad product diversification across the automotive parts and equipment space, and status as the largest North American auto supplier, we think the strength of its Q1 results has positive implications for other auto suppliers.