Lear (NYSE: LEA ) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 29 (Q2), Lear beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Gross margins shrank, operating margins were steady, net margins dropped.
Lear logged revenue of $4.11 billion. The 12 analysts polled by S&P Capital IQ expected net sales of $3.92 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $3.67 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.62. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.37 per share. Non-GAAP EPS of $1.62 for Q2 were 20% higher than the prior-year quarter's $1.35 per share. GAAP EPS of $1.60 for Q2 were 10% higher than the prior-year quarter's $1.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 8.2%, 10 basis points worse than the prior-year quarter. Operating margin was 4.9%, much about the same as the prior-year quarter. Net margin was 3.3%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.77 billion. On the bottom line, the average EPS estimate is $1.28.
Next year's average estimate for revenue is $15.53 billion. The average EPS estimate is $5.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 118 rating the stock outperform, and four members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Lear a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lear is outperform, with an average price target of $68.09.
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