Magna Earnings: UAW Strike Crimps Results and Margin Guidance Fails to Impress

No-moat-rated Magna reported fourth-quarter earnings per share before special items of $1.33, missing the $1.46 FactSet consensus by $0.13 but up $0.39 from $0.94 reported a year ago. Higher customer volumes on less supply chain disruption were partly offset by UAW strikes, increased engineering spending, and inflationary cost pressures. Revenue rose 9% to $10.5 billion, up from $9.6 billion in the prior year due to increased volume, new business backlog, and the Veoneer acquisition. The top line narrowly beat consensus by $13 million. Organic revenue increased 4%, 2 percentage points below a 6% increase in global production weighted to Magna's customer base, mainly due to the strike.