Lear Earnings: Here’s Why Investors are Ambivalent Now

Lear Corp. (NYSE:LEA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Lear Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.8% to $1.3 in the quarter versus EPS of $1.38 in the year-earlier quarter.

Revenue: Rose 8.32% to $3.95 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lear Corp. reported adjusted EPS income of $1.3 per share. By that measure, the company beat the mean analyst estimate of $1.1. It beat the average revenue estimate of $3.68 billion.

Quoting Management: “Lear had another quarter of strong operating performance,” said Matt Simoncini, Lear’s president and chief executive officer. “We are following a balanced approach of investing in our business and maintaining a strong and flexible balance sheet while returning excess cash to shareholders. During the quarter, we took several actions to improve our capital structure and financial flexibility. Additionally, we have significantly increased our dividend, as well as the size and pace of our share repurchase program.”

Key Stats (on next page)…

Revenue increased 6.12% from $3.72 billion in the previous quarter. EPS decreased 12.16% from $1.48 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.29 to a profit $1.25. For the current year, the average estimate has moved down from a profit of $5.1 to a profit of $4.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)