Auto parts maker Linamar Q3 sales slightly beat expectations, helped by mobility segment growth

Reuters11-13
Auto parts maker Linamar Q3 sales slightly beat expectations, helped by mobility segment growth

Overview

  • Linamar Q3 sales slightly beat analyst expectations

  • Normalized operating earnings rose 87.7% to $165.9 mln

  • Company renews normal course issuer bid, repurchased 1.1 mln shares YTD

Outlook

  • Company sees acquisitions driving growth in casting solutions and structural capabilities

Result Drivers

  • MOBILITY SEGMENT GROWTH - Strong performance in the Mobility segment offset declines in Industrial, with CPV growth in North America, Europe, and Asia Pacific

  • CASH MANAGEMENT - Free cash flow increased to $320.9 mln due to careful cash management, enhancing liquidity

  • INDUSTRIAL SEGMENT MARKET SHARE - Despite industrial market declines, Linamar increased market share in aerial work platforms and agricultural products

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Slight Beat*

C$2.54 bln

C$2.52 bln (4 Analysts)

Q3 EPS

C$2.82

Q3 Net Income

C$169.2 mln

Q3 Dividend

C$0.29

Q3 Operating Earnings

C$250.9 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

  • Wall Street's median 12-month price target for Linamar Corp is C$81.50, about 8.1% above its November 11 closing price of C$74.86

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nGNX95HbWD

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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