10:42 AM EST, 02/14/2025 (MT Newswires) -- Magna International ( MGA ) provided a full-year revenue outlook that fell short of Wall Street's expectations amid likely weakness in vehicle production, even though the Canadian auto parts supplier recorded a surprise increase in its fourth-quarter sales.

The company anticipates sales to come in between $38.6 billion and $40.2 billion for the current year, compared with the consensus on FactSet is for $42.64 billion. In 2024, sales edged higher to $42.84 billion from nearly $42.8 billion on an annual basis.

Magna's shares on the New York Stock Exchange moved down 3.9% in Friday's trading session.

The guidance reflects foreign-exchange headwinds, lower light vehicle production and the end of Jaguar assembly programs, the company said. Magna expects light vehicle production to reach 15.1 million units in North America this year. It forecasts production of 16.6 million units in Europe and 29.7 million units in China.

"Macro challenges persist, including continued weak light vehicle production in our largest markets and a strong US dollar, which reduces our reported sales and earnings," Chief Financial Officer Patrick McCann said during an earnings call, according to a FactSet transcript. "Our outlook reflects a 2% decline in weighted global vehicle production in 2025 and no growth over the 2024 to 2026 period."

For 2026, the company now expects revenue to be in a range of $40.5 billion to $42.6 billion, down from the forecast it provided in August for $44 billion to $46.5 billion. The Street is looking for sales of $43.4 billion for next year.

Magna posted adjusted earnings of $1.69 per share for the three months through December, up from $1.33 the year before, topping the average analyst estimate of $1.52. Sales rose to $10.63 billion from $10.45 billion, defying the market's expectation for a decrease to $10.31 billion.

Global light vehicle production rose 2%, driven by gains in North America and China that were weighed down by a decline in Europe.

Revenue for the body exteriors and structures segment moved down to $4.07 billion from $4.18 billion in the prior-year quarter, while power and vision remained nearly flat at $3.79 billion. Seating systems sales improved 6%, while complete vehicles' top-line climbed 17%.

"While we do not provide a quarterly outlook similar to the last couple of years, we expect our 2025 earnings to be lowest in the first quarter of 2025 and improve meaningfully in the second quarter," McCann said on the call. "In fact, (the first quarter of) 2025 is expected to be lower than (the first quarter of) 2024."

Price: 38.74, Change: -0.94, Percent Change: -2.36