MGA - Why Auto Parts Stocks Popped (and Dropped) Today
2023-11-03 12:08:23 ET
It's earnings week for automotive parts companies , and the news on Friday is good ... but also bad. Over the last 18 hours, three of the biggest names in car parts have reported their results, with Magna International (NYSE: MGA) delivering a positive earnings surprise and American Axle & Manufacturing Holdings (NYSE: AXL) beating on sales, but Fox Factory (NASDAQ: FOXF) reporting an earnings miss Thursday night.
As of 10:15 a.m. ET Friday, Magna stock is up a strong 13.8%, and American Axle has gained a bit more at 14.2%. But Fox Factory shares are getting hammered -- they're down 40%.
Let's start with the good news. Friday morning, Magna International reported profits of $1.37 per share on third-quarter sales of $10.7 billion. That worked out to a 15% year-over-year increase in sales, but a 37% increase in profits.
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Why Auto Parts Stocks Popped (and Dropped) Today