Magna (MGA) Q1 Earnings Lag Estimates

Group 1: Earnings Performance - Magna reported quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of$ 0.90 per share, and down from $1.08 per share a year ago, representing an earnings surprise of -13.33% [1] - The company posted revenues of$ 10.07 billion for the quarter, surpassing the Zacks Consensus Estimate by 5.70%, but down from $10.97 billion year-over-year [2] - Over the last four quarters, Magna has surpassed consensus EPS estimates only once [2] Group 2: Stock Performance and Outlook - Magna shares have declined approximately 16.2% since the beginning of the year, compared to a -4.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is$ 1.15 on revenues of $9.75 billion, and for the current fiscal year, it is$ 5.02 on revenues of $38.94 billion [7] - The estimate revisions trend for Magna is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Automotive - Original Equipment industry, to which Magna belongs, is currently in the bottom 32% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Magna's stock performance [5]