Lear Corp Fourth Quarter Earnings Sneak Peek

Lear Corporation (NYSE:LEA) will unveil its latest earnings tomorrow, Friday, February 1, 2013.  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 estimate of analysts is for net income of $1.38 per share, a rise of 9.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.34. Between one and three months ago, the average estimate moved up. It has risen from $1.37 during the last month. For the year, analysts are projecting profit of $5.39 per share, a rise of 0.9% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 9 cents, reporting net income of $1.29 per share against a mean estimate of profit of $1.20 per share.

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A Look Back: In the third quarter, profit rose 20.6% to $121.4 million ($1.23 a share) from $100.7 million (95 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.3% to $3.54 billion from $3.46 billion.

Here’s how Lear Corp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Stock Price Performance: Between October 30, 2012 and January 28, 2013, the stock price rose $7.11 (17%), from $41.74 to $48.85. The stock price saw one of its best stretches over the last year between September 26, 2012 and October 4, 2012, when shares rose for seven straight days, increasing 9.8% (+$3.65) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 11% (-$4.64) over that span.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the fourth quarter of the last fiscal year, the first quarter and the second quarter before snapping that run with a profit increase in the third quarter.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 0.3% in the second quarter after increasing in the third quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.1% in revenue from the year-earlier quarter to $3.55 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.47 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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