Lear
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Lear beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew significantly.
Gross margins contracted, operating margins contracted, net margins expanded.
Revenue details
Lear booked revenue of $3.54 billion. The 11 analysts polled by S&P Capital IQ anticipated revenue of $3.46 billion on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $3.46 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.29. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.19 per share. GAAP EPS of $1.23 for Q3 were 29% higher than the prior-year quarter's $0.95 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 8.2%, 20 basis points worse than the prior-year quarter. Operating margin was 4.8%, 10 basis points worse than the prior-year quarter. Net margin was 3.4%, 50 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $3.54 billion. On the bottom line, the average EPS estimate is $1.32.
Next year's average estimate for revenue is $14.32 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 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 $55.61.
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