Lear Corp First Quarter Earnings Sneak Peek

Lear Corporation (NYSE:LEA) will unveil its latest earnings on Thursday, May 3, 2012. Lear and its affiliates design and manufacture complete automotive seat systems and components as well as electrical distribution systems and electronic products.

Lear Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.20 per share, a decline of 17.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.30. Between one and three months ago, the average estimate moved down. It has risen from $1.17 during the last month. Analysts are projecting profit to rise by 3.7% compared to last year’s $5.14.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported net income of $1.26 per share against a mean estimate of profit of $1.17 per share. In the third quarter of the last fiscal year, it missed forecasts by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.6 billion in revenue this quarter, a rise of 2.6% from the year-ago quarter. Analysts are forecasting total revenue of $14.47 billion for the year, a rise of 2.2% from last year’s revenue of $14.16 billion.

Analyst Ratings: Analysts are bullish on this stock, with eight analysts rating it as a buy, one rating it as a sell and three rating it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 9.1% to $106.5 million ($1.03 a share) from $117.1 million ($1.09 a share) the year earlier, but exceeded analyst expectations. Revenue rose 11.2% to $3.51 billion from $3.16 billion.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 18.6% over the last four quarters.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose more than twofold in the first quarter of the last fiscal year, 11.1% in the second quarter of the last fiscal year and 5.7% in the third quarter of the last fiscal year before declining in the fourth quarter of the last fiscal year.

Stock Price Performance: Between March 29, 2012 and April 27, 2012, the stock price dropped $3.64 (-7.8%), from $46.46 to $42.82. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 6, 2012, when shares rose for seven straight days, increasing 7.1% (+$2.80) over that span. It saw one of its worst periods between November 11, 2011 and November 21, 2011 when shares fell for seven straight days, dropping 8.8% (-$3.78) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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