The 10-second takeaway
For the quarter ended March 30 (Q1), 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 dropped. GAAP earnings per share dropped.
Margins shrank across the board.
Lear reported revenue of $3.95 billion. The 13 analysts polled by S&P Capital IQ predicted a top line of $3.72 billion on the same basis. GAAP reported sales were 8.3% higher than the prior-year quarter's $3.64 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 $1.30. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.12 per share. Non-GAAP EPS of $1.30 for Q1 were 5.8% lower than the prior-year quarter's $1.38 per share. GAAP EPS of $1.13 for Q1 were 14% lower than the prior-year quarter's $1.32 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 7.9%, 70 basis points worse than the prior-year quarter. Operating margin was 4.4%, 90 basis points worse than the prior-year quarter. Net margin was 2.7%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.86 billion. On the bottom line, the average EPS estimate is $1.31.
Next year's average estimate for revenue is $15.40 billion. The average EPS estimate is $5.15.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 112 members out of 115 rating the stock outperform, and three members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 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 $60.56.
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