Magna Earnings: Revenue Guidance Cut Follows Trend of Some Other Auto Suppliers

Magna’s first-quarter results included adjusted diluted earnings per share falling 6.1% year over year to $1.08, while adjusted EBIT, including equity income, rose 4.5% to $469 million. Pretax income, however, fell 2.6% on higher interest expense. Like some other suppliers in our coverage, Magna is seeing customers slowing launch volumes, and it has taken a $400 million hit to projected full-year revenue on the assumption of no further Fisker Ocean production in the Steyr complete assembly segment. We think that assumption is prudent, given Fisker’s distress.