November 5, 2010 / 1:46 PM / 8 years ago

Magna shares surge on shareholder-friendly news

* Stock up 6.7 pct on the TSX at market open

* Q3 EPS $2.06 vs analyst view $1.52; revenue up 27 pct

* Raises dividend by 20 percent

* Plans to buy back up to 3.3 percent of common shares (In U.S. dollars unless noted)

By John McCrank

TORONTO, Nov 5 (Reuters) - Shares of Magna International (MG.TO) (MGA.N) jumped 5.6 percent in opening trade on Friday a day after the auto parts maker made a bevy of investor-friendly announcements and released quarterly results that blew past analysts’ expectations.

Magna raised its 2010 revenue outlook, boosted its dividend by 20 percent, announced a two-for-one stock split, a share buy-back, and a review of its board of directors, in what one analyst on the company’s conference call called “one of the most shareholder-friendly press releases I’ve ever seen.”

The company said after the market closed on Thursday that the rebound in auto production and higher content per vehicle in North America and Europe helped it more than quadruple its earnings from a year earlier to $241 million, or $2.06 a share. Revenue rose 27 percent to $5.9 billion. [ID:nN04228491]

Analysts expected had Magna to earn $1.52 a share on revenue of $5.4 billion, according to Thomson Reuters I/B/E/S.

Shares of Magna were up C$6.29, or 6.7 percent, at C$99.90 on the Toronto Stock Exchange shortly after the market opened on Friday.

$1=$1.00 Canadian Reporting by John McCrank; editing by Peter Galloway

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