Lear Earnings: Here’s Why the Stock is Up 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. Shares are up 3.59%.

Lear Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20% to $1.62 in the quarter versus EPS of $1.35 in the year-earlier quarter.

Revenue: Rose 12.22% to $4.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lear Corp. reported adjusted EPS income of $1.62 per share. By that measure, the company beat the mean analyst estimate of $1.37. It beat the average revenue estimate of $3.91 billion.

Quoting Management: “Lear performed well in the second quarter, with sales and earnings growing faster than global industry production,” said Matt Simoncini, Lear’s president and chief executive officer. “Our strong financial position allows us to strengthen and grow our business while improving our cost structure. We plan to maintain a balanced approach of investing in the business and returning excess cash to shareholders in order to drive shareholder value.”

Key Stats (on next page)…

Revenue increased 4.2% from $3.95 billion in the previous quarter. EPS increased 24.62% from $1.30 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.25 to a profit $1.28. For the current year, the average estimate has moved up from a profit of $5.17 to a profit of $5.4 over the last ninety days.

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