Magna International Inc. MGA is slated to release first-quarter 2026 results on May 1, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.01 and $10.1 billion, respectively.
For the first quarter, the consensus estimate for Magna’s earnings has moved down 2 cents in the past seven days. Its bottom-line estimates imply 29.5% growth from the year-ago reported numbers.
The Zacks Consensus Estimate for MGA's quarterly revenues implies year-over-year growth of 0.2%. The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.85%. This is depicted in the graph below:
Magna International Inc. Price and EPS Surprise
Magna International Inc. price-eps-surprise | Magna International Inc. Quote
Q4 Highlights
Magna reported fourth-quarter 2025 adjusted earnings of $2.18 per share, which rose from the year-ago quarter’s $1.69. The figure beat the Zacks Consensus Estimate of $1.81. Net sales increased 2% year over year to $10.85 billion, which outpaced the Zacks Consensus Estimate of $10.48 billion.
Things to Note
The acquisition of Veoneer Active Safety business has solidified Magna’s position as a global leader in active safety, revving up its ADAS business. The buyout of HE Systems has accelerated in-house car module development and enhanced Magna’s technical and manufacturing capabilities. Magna has also strengthened its collaboration with NVIDIA to advance AI-powered active safety solutions.
Magna is implementing restructuring and cost containment measures to mitigate short- and mid-term macroeconomic pressures. The company secured commercial recoveries and executed tariff mitigation plans, offsetting the vast majority of direct impacts.
Meanwhile, Magna is accelerating operational excellence initiatives, including unified digital architecture, real-time performance dashboards, AI-enabled automation and material flow optimization, driving sustainable productivity gains and continued margin expansion. As a result, adjusted EBIT margin improved to 5.6% in 2025 and is expected to expand further to 6-6.6% in 2026.
The strength of strategic acquisitions and collaborations, along with cost-containment efforts, is likely to have boosted Magna’s performance in the to-be-reported quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Magna for the quarter to be reported, as it has the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is the case here.
Earnings ESP: MGA has an Earnings ESP of +8.56%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Magna currently carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are a few other players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.
Lear Corporation LEA is scheduled to release first-quarter 2026 results on May 1. The company has an Earnings ESP of +3.02% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lear’s to-be-reported quarter’s earnings and revenues is pegged at $3.37 per share and $5.84 billion, respectively. LEA surpassed earnings estimates in each of the trailing four quarters, the average surprise being 14.26%.
Allison Transmission Holdings, Inc. ALSN is slated to release first-quarter 2026 results on May 4. The company has an Earnings ESP of +25.84% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Allison’s to-be-reported quarter’s earnings and revenues is pegged at $2.54 per share and $1.38 billion. ALSN missed earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.46%.
Lucid Group, Inc. LCID is set to release first-quarter 2026 results on May 5. The company has an Earnings ESP of +2.51% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Lucid’s to-be-reported quarter’s loss and revenues is pegged at $2.72 per share and $428.7 million. LCID missed earnings estimates in each of the trailing four quarters, with the average negative surprise being 29.92%.
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Magna International Inc. (MGA): Free Stock Analysis Report
Lear Corporation (LEA): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
Lucid Group, Inc. (LCID): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).