Magna International Inc. shares fell in early trading Friday morning after the company reported lower profit in the fourth quarter.
At 10:16 a.m. ET, the company’s Toronto-listed shares were trading about 14% lower at 74.87 Canadian dollars ($55.64).
For the three months ended Dec. 31, the Canadian auto-parts manufacturer said net income fell to $95 million, or 33 cents a share, from $464 million, or $1.54 a share, a year earlier.
On an adjusted basis, per-share earnings fell to 91 cents from $1.30 a share. According to consensus expectations of analysts polled on FactSet, earings were forecast to fall even lower to 85 cents.
Adjusted earnings before interest and taxes also fell, reaching $356 million in the quarter, compared with $508 million the year before.
Meanwhile, sales in the period increased to $9.57 billion from $9.11 billion, also beating expectations of $9.47 billion.
Looking ahead, Magna laid out its expectations for 2023, pegging total sales between $39.6 billion and $41.2 billion. This is ahead of 2022’s sales, which rose 4.4% to $37.84 billion, and ahead of consensus expectations for revenue to reach $39.72 billion, on the low end of Magna’s updated guidance.
Net income is expected to be between $1.1 billion and $1.4 billion. Up from the $592 million reported for 2022, a 61% decline from 2021.
This is expected to grow further in 2025, setting new targets for revenue to be between $44.7 billion and $47.2 billion, with analysts expectations near the mid-point of $46.36 billion.