Lear Corp Third Quarter Earnings Sneak Peek

Lear Corporation (NYSE:LEA) will unveil its latest earnings on Friday, October 26, 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 estimate of analysts is for profit of $1.19 per share, a rise of 10.2% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 1.5% versus last year to $5.26.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of $1.35 per share versus a mean estimate of profit of $1.29 per share.

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A Look Back: In the second quarter, profit fell 18.1% to $145.4 million ($1.45 a share) from $177.5 million ($1.65 a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.3% to $3.67 billion from $3.68 billion.

Stock Price Performance: Between July 27, 2012 and October 22, 2012, the stock price rose $5.54 (15.3%), from $36.31 to $41.85. 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:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 22.7% in the third quarter of the last fiscal year, 11.2% in the fourth quarter of the last fiscal year and 3.8%in the first quarter before dropping in the second quarter.

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 9.1% in the fourth quarter of the last fiscal year, by 14% in the first quarter and again in the second quarter.

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.

Wall St. Revenue Expectations: On average, analysts predict $3.45 billion in revenue this quarter, a decline of 0.3% from the year-ago quarter. Analysts are forecasting total revenue of $14.32 billion for the year, a rise of 1.1% from last year’s revenue of $14.16 billion.

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

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