NEW YORK - Magna International Inc. (NYSE:MGA) shares jumped 8.4% after the auto parts maker reported third-quarter earnings and announced plans to resume share repurchases ahead of schedule.
The company posted adjusted earnings per share of $1.28 for the quarter, missing analyst estimates of $1.40. Revenue came in at $10.28 billion, slightly below the consensus forecast of $10.35 billion and down 4% YoY, in line with the 4% reduction in global light vehicle production.
Despite the earnings miss, investors cheered Magna's announcement that it will commence a new share buyback program in the fourth quarter of 2024, earlier than previously planned. The company's board approved a Normal Course Issuer Bid to repurchase up to 10% of Magna's public float of common shares.
"As we continuously seek to optimize value creation, we are resuming share repurchases in the fourth quarter – ahead of our prior plan," said CEO Swamy Kotagiri.
Magna's third-quarter revenue decline reflected lower light vehicle production across its core regions, with North America and China both seeing 6% drops and Europe declining 2%. The company also cited the end of certain programs and divestitures as factors impacting sales.
For the full year 2024, Magna forecasts revenue between $42.2 billion and $43.2 billion, compared to analyst expectations of $42.7 billion.
The company declared a quarterly dividend of $0.475 per share, payable on November 29, 2024.
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