Toronto, Ontario — In this weekly Tuesday Ticker, Magna blows analyst expectations out of the water and sees shares jump almost 15 percent; while a government source teases that Toyota could soon seek Ottawa’s assistance in its shift to EV assembly.
Magna’s shares move
Magna saw its shares surge last Friday as the Aurora, Ont.-based auto parts manufacturer reported better-than-expected Q3 results.
Shares rose more than 10 percent during Friday trading as Magna reported a net income of $394 million—a significant rise from Q3 2022’s $289 million in sales. Adjusted earnings for Q3 2023 were $1.46 per share, passing the analyst prediction of $1.31 per share.
Analysts were even more surprised at the results given the recent uncertainty of the U.S. United Auto Workers’ strike. Magna says its results were driven by notable increases in global light vehicle production. North American production levels rose about seven percent,
As of Monday afternoon at 2:15 p.m. ET, shares of Magna traded at 73.33 per share, up 0.27 percent from open.
Toyota is tip-toeing…
Toyota is reportedly seeking financial assistance from the federal government, according to a source familiar with the matter.
The automaker is seeking “billions of dollars,” according to a source cited by Globe and Mail, as it prepares to shift its assembly plants to electric vehicles. The source did not identify whether monies sought were in loans or grants.
A Toyota spokesperson declined to comment on the matter, but said that Toyota is committed to planning for the future.
