CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 75-95% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Canada's Magna beats Q3 adjusted EPS estimates, raises FY free-cash-flow forecast

By Reuters News


Overview

  • Canada automotive supplier's Q3 sales fell 4% but slightly beat analyst expectations

  • Adjusted EPS for Q3 rose 38% and beat analyst expectations

  • Company approved new share buyback for up to 10% of public float


Outlook

  • Magna sees 2026 sales of $41.2-$42.0 bln, down from previous $41.3-$42.5 bln outlook

  • Company reaffirms midpoint of 2026 adjusted EPS outlook at $6.85-$7.15

  • Magna raises 2026 free cash flow outlook to $1.85-$1.90 bln from $1.75-$1.85 bln


Result Drivers

  • PRODUCTIVITY IMPROVEMENTS - Co said operational excellence initiatives and prior restructuring actions contributed to higher Adjusted EBIT and margins

  • COMMERCIAL ITEMS - Net favourable commercial items helped boost Adjusted EBIT in Q3

  • TARIFF RECOVERIES - Recoveries for tariffs and lower tariff costs incurred supported earnings growth

  • LOWER VEHICLE PRODUCTION - Co said Q3 sales decline was mainly due to lower light vehicle production in North America and China, divestitures, and program end


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Beat*

$10.10 bln

$10.01 bln (11 Analysts)

Q3 Adjusted EPS

Beat

$1.83

$1.59 (14 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy."

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 28 - Ford Q3 revenue beats analyst estimates

  • Oct 29 - BorgWarner beats Q3 adjusted EPS estimates, lifts 2026 outlook

  • Oct 29 - Garrett Motion Q3 sales rise on commercial vehicle demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.