Magna International Inc.
) reached 52-week high of $58.08 on Mar 20. Shares of the company
started escalating following its impressive fourth quarter
results, raised dividend and promising guidance. Their previous
52-week high was $56.64.
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Aurora, Canada-based Magna International is a leading
manufacturer and supplier of automotive components. The company
designs, develops and manufactures automotive systems,
assemblies, modules and components, besides engineering and
assembling complete vehicles, primarily for sale to original
equipment manufacturers (OEMs) of cars and light trucks. It has a
market cap of $13.2 billion.
Magna reported a 12.9% rise in earnings per share to $1.49 in the
fourth quarter of 2012 from $1.32 in the year-ago quarter and
outpaced the Zacks Consensus Estimate of $1.14. Revenues went up
10.8% to $8.03 billion in the reported quarter, exceeding the
Zacks Consensus Estimate of $7.75 billion.
The increase in revenues was attributable to improvement in North
American and Rest of World (ROW) production sales and higher
tooling, engineering and other sales together with improved
complete vehicle assembly sales.
The board of directors of the company declared a 16% rise in
quarterly dividend to 32 cents per share, reflecting strong
performance of the company.
Magna expects higher sales in 2013. The company foresees total
revenue between $32.0 billion and $33.4 billion for the year, up
from $30.8 billion in 2012.
Magna has projected revenues in the External Production segment
between $27.0 billion and $28.0 billion for the year compared
with $26.0 billion in 2012. Complete Vehicle Assembly revenues
are projected in the range of $2.6 billion to $2.9 billion
compared with $2.6 billion in 2012.
Currently, Magna retains a Zacks Rank #3 (Hold). While we remain
on the sidelines about Magna, stocks from the same industry that
warrant a look include
STRATTEC Security Corporation
). All of them carry a Zacks Rank #1 (Strong Buy).