The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Lear beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank.
Margins dropped across the board.
Lear tallied revenue of $3.51 billion. The 11 analysts polled by S&P Capital IQ expected to see revenue of $3.47 billion. Sales were 11% higher than the prior-year quarter's $3.16 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.26. The 15 earnings estimates compiled by S&P Capital IQ anticipated $1.18 per share on the same basis. GAAP EPS of $1.03 for Q4 were 4.6% lower than the prior-year quarter's $1.08 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 6.9%, 280 basis points worse than the prior-year quarter. Operating margin was 2.9%, 340 basis points worse than the prior-year quarter. Net margin was 3.0%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.57 billion. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $14.50 billion. The average EPS estimate is $5.27.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 71 members out of 73 rating the stock outperform, and two members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), all of them give Lear a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lear is outperform, with an average price target of $62.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.