Lear (NYSE: LEA) is expected to report Q3 earnings around Oct. 26. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Lear's revenues will drop -0.7% and EPS will expand 10.2%.
The average estimate for revenue is $3.43 billion. On the bottom line, the average EPS estimate is $1.19.
Revenue details
Last quarter, Lear chalked up revenue of $3.67 billion. GAAP reported sales were 0.3% lower than the prior-year quarter's $3.68 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $1.35. GAAP EPS of $1.45 for Q2 were 12% lower than the prior-year quarter's $1.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 8.6%, 80 basis points worse than the prior-year quarter. Operating margin was 5.2%, 80 basis points worse than the prior-year quarter. Net margin was 4.0%, 80 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $14.31 billion. The average EPS estimate is $5.24.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 81 members out of 83 rating the stock outperform, and two members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 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 $58.53.
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