- Lear Corporation reduced its full-year net sales forecast, now expecting between $22.95 billion to $23.15 billion, down from the earlier $23.23 billion to $23.67 billion range, and below estimates of $23.28 billion.
- Adjusted EBITDA projection is set between $1.67 billion to $1.72 billion, from a previous range of $1.67 billion to $1.84 billion, aligning closely with the estimated $1.71 billion.
- Free cash flow forecast is between $535 million and $585 million, down from a prior range of $485 million to $635 million, below the estimate of $590.6 million.
- In the third quarter, adjusted earnings per share were $2.89, a slight increase from $2.87 year-over-year, and above the estimate of $2.60.
- Net sales for the third quarter reached $5.58 billion, a 3.4% decline year-over-year, but surpassing the $5.52 billion estimate.
- Adjusted net income for the quarter was $162.8 million, reflecting a 4% year-over-year decrease, yet above the projected $149.2 million.
- Free cash flow dropped significantly by 80% year-over-year to $50.5 million, much lower than the estimated $363 million.
- Capital expenditure was $132.2 million, down 14% year-over-year, and below the expected $177.7 million.
- Seating division net sales were $4.11 billion, down 4% year-over-year, surpassing the $4.07 billion estimate.
- Seating adjusted margin maintained at 6.4%, above the estimated 6.07%.
- Seating adjusted earnings dropped by 4.9% year-over-year to $261.5 million, exceeding the $247.3 million estimate.
- E-Systems net sales were $1.47 billion, a 1.6% year-over-year decrease, slightly above the $1.45 billion estimate.
- E-Systems adjusted margin was 5%, down from 5.3% year-over-year, missing the 5.16% estimate.
- E-Systems adjusted earnings stood at $74.2 million, a 6% year-over-year decrease, slightly below the $75.2 million estimate.
- The company noted an accelerated pace in share repurchases, which helped increase adjusted earnings per share in the face of lower industry volumes.
- Analyst ratings include 10 buys, 7 holds, and 0 sells.
Lear Corp on Smartkarma
Analysts at Baptista Research have been closely following Lear Corporation on Smartkarma, a platform for independent investment research. In their report titled “Lear Corporation: Expansion in China and Emerging Markets Catalyzing Top-Line Growth! – Major Drivers,” they highlight the company’s strong second-quarter earnings, with revenue exceeding $6 billion and growth outpacing market averages in key segments like E-Systems and Seating. This indicates Lear’s competitive edge in the market and potential for sustained growth.
In another report by Baptista Research titled “Lear Corporation: Industrial Automation,” they note Lear Corporation’s robust performance in the first quarter, with record revenues of $6 billion, a 3% increase. Core operating earnings also saw a 6% rise to $280 million, with adjusted earnings per share climbing 14% to $3.18. Operating cash flow remained steady, reflecting the company’s financial stability and ability to deliver consistent results.
A look at Lear Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts reviewing Smartkarma Smart Scores for Lear Corp have noted positive indicators for the company’s long-term prospects. With strong scores in both the Value and Dividend categories, Lear Corp is seen as a solid investment option for those seeking stable returns. Additionally, the company’s respectable scores in Growth, Resilience, and Momentum suggest a well-rounded performance across various key factors.
Lear Corporation, a manufacturer of automobile parts, is positioned well for the future based on the Smartkarma Smart Scores. Despite facing moderate scores in Growth, Resilience, and Momentum, the company’s standout ratings in Value and Dividend underline its potential for consistent performance. With a diverse product portfolio that includes seating systems, wiring harnesses, and audio systems among others, Lear Corp is poised to navigate market challenges and capitalize on opportunities in the automotive industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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