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Magna (MGA) Introduces Seating Platform for Autonomous Cars

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Magna International Inc.MGA revealed its vision for an advanced seating platform that focuses on offering the ideal user experience. Developed after an in-depth digital and in-market consumer research, the reconfigurable seating technologies and solutions will provide passengers with a flexible vehicle interior for carrying cargo and interacting with each other during a long ride.

Magna believes that with the availability of mobility and autonomous vehicles, the seating experience of passengers will also change. It developed the seating solution, keeping in mind the basic functionalities of a vehicle cabin - consisting convenience, comfort and flexibility.

Headquartered in Aurora, Canada, the company is a leading manufacturer and supplier of automotive components. During the last reported quarter, Magna's Seating Systems segment's sales were $1.2 billion, driven by program launches compared with the prior-year quarter. Further, the segment is expected to continue witnessing significant growth across all markets as a result of high-quality product launches beside strong program management. For 2018, the company projects sales of $5.4-$5.6 billion for the segment.

Magna International Inc. Price and Consensus

Magna International Inc. Price and Consensus | Magna International Inc. Quote

Apart from the Seating Systems, other segments of the company are Body Exteriors & Structures, Power & Vision segment, and Complete Vehicles. In third-quarter 2018, the segments' sales were $4.2 billion, $2.9 billion and $1.39 billion, respectively. During the quarter, Magna's revenues increased 9% year over year to $9.6 billion, driven by revenue generation in all segments, owing to light-vehicle production rise of 4% in North America. For 2018, the company expects total sales of $40.3 billion to $41.4 billion, which represent rise of 10-13% from 2017.

Price Performance

Over the past six months, Magna's stock has lost 31%, outperforming 35.1% decrease recorded by the industry it belongs to.

Zacks Rank & Key Picks

Magna currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Fox Factory Holding Corporation FOXF , Cooper Tire & Rubber Company CTB , and Tesla, Inc. TSLA . Fox Factory and Cooper Tire currently carry a Zacks Rank #2 (Buy) while Tesla sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Fox Factory has an expected long-term growth rate of 5%. Shares of the company have increased 53.4% over the past six months.

Cooper Tire has an expected long-term growth rate of 4%. Shares of the company have rallied 14.7% over the past six months.

Tesla has an expected long-term growth rate of 35%. Over the past six months, shares of the company have gained 6.4%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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