The 10-second takeaway
For the quarter ended March 31 (Q1), Lear beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue increased and GAAP earnings per share contracted.
Margins dropped across the board.
Lear tallied revenue of $3.64 billion. The 11 analysts polled by S&P Capital IQ looked for revenue of $3.59 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $3.51 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 $1.38. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.20 per share. GAAP EPS of $1.32 for Q1 were 8.3% lower than the prior-year quarter's $1.44 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 8.5%, 80 basis points worse than the prior-year quarter. Operating margin was 5.1%, 60 basis points worse than the prior-year quarter. Net margin was 3.7%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.69 billion. On the bottom line, the average EPS estimate is $1.34.
Next year's average estimate for revenue is $14.49 billion. The average EPS estimate is $5.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 80 members out of 82 rating the stock outperform, and two members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 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 $59.32.
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