Magna Rises Most Since 2011 After Profit, Dividend IncreaseAlexandra Mondalek
Magna International Inc. climbed the most in more than three years after the auto-parts maker posted fourth-quarter profit that beat analysts’ estimates and increased its dividend.
The shares rose 7.6 percent to $110.01 at the close in New York, the biggest daily gain since October 2011. Magna’s stock has advanced 27 percent in the past 12 months, as the Standard & Poor’s 500 Index increased 15 percent.
Magna reported earnings excluding some items of $2.52 a share on Wednesday, compared with the $2.24 average of 16 estimates compiled by Bloomberg. The Aurora, Ontario-based company’s quarterly sales of $9.4 billion also topped the $9.06 billion analysts projected, helped by increases in vehicle production in North America and Europe.
The quarterly dividend was boosted 16 percent to 44 cents a share. Magna also said it will split the stock 2-for-1, payable March 25 for shareholders as of March 11.
The company lowered its 2015 revenue forecast to $33.1 billion to $34.8 billion, from a January outlook of $34.4 billion to $36.1 billion. The average estimate was $36 billion.