Magna International, Inc. ( MGA ) shares are trading lower after reporting second-quarter results.

The company reported adjusted earnings per share of $1.35, which missed the street view of $1.44. Quarterly sales of $10.958 billion also missed the analyst consensus of $11.012 billion.

Sales were negatively impacted by the end of production of certain programs, lower Complete Vehicle assembly volumes, including the end of production of the BMW 5-Series, and the net weakening of foreign currencies against the U.S. dollar.

Adjusted EBIT was $577 million in the second quarter of 2024 compared to $616 million in the second quarter of 2023.

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The decrease in adjusted EBIT reflects reduced earnings on lower assembly volumes in Complete Vehicles.

The company declared a second-quarter dividend of $0.475 per common share, payable on August 30 to shareholders of record as of the close of business on August 16.

In the second quarter of 2024, Magna International ( MGA ) generated cash from operations before changes in operating assets and liabilities of $681 million and generated $55 million in operating assets and liabilities.

Outlook: Magna International ( MGA ) has revised its FY24 sales outlook to $42.5 billion-$44.1 billion from the prior $42.6 billion-$44.2 billion, below the $43.28 billion estimate, while maintaining its adjusted net income forecast of $1.5 billion-$1.7 billion.

The company sees 2026 sales of $44.0 billion to $46.5 billion, lower than the prior view of $48.8 billion – $51.2 billion.

“Our updated 2026 Outlook reflects customer program updates and a tempered view on mid-term electric vehicle penetration rates, particularly in North America,” said Swamy Kotagiri, Chief Executive Officer.

“While we have reduced our sales forecast, we are taking a number of concrete actions to mitigate the sales impacts and continue to expect margin expansion and strong free cash flow growth.”

Price Action: MGA shares are trading lower by 6.67% to $40.14 at last check Friday.

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