Back to top

Analyst Blog

Shares of Lear Corp. (LEA - Snapshot Report) hit 52-week high of $56.70 on Mar 15. Shares of the company started escalating, buoyed up by its impressive fourth quarter results, aggressive share repurchase strategy, optimistic guidance and promises of boosting shareholder value in the future. Their previous 52-week high was $56.08.

Lear Corporation designs, manufactures, assembles and supplies automotive seat systems, electrical distribution systems and related components primarily to automotive original equipment manufacturers. The company sells its products mainly in North America, South America, Europe and Asia. It has a market cap of $5.3 billion.

Lear posted a 17.5% rise in adjusted earnings per share to $1.48 in the fourth quarter of 2012 from $1.26 in the corresponding quarter last year. Profits in the quarter beat the Zacks Consensus Estimate by a dime.

Revenues increased 6% to $3.7 million in the reported quarter, surpassing the Zacks Consensus Estimate of $3.5 million. Global industry production increased 2% year over year, with a 10% hike in North America and 4% rise in China.

During 2012, Lear repurchased 5.4 million shares for $223 million. Since the inception of the share repurchase program, the company has repurchased 11.5 million shares for $502 million.

In Jan 2013, the board of directors of Lear has authorized an additional $800 million for repurchase under the existing share repurchase program and extended the authorization till Jan 10, 2016. With this, the company had approximately $1.0 billion worth of shares remaining under its share repurchase program at the end of the quarter. In 2013, Lear anticipates higher revenues between $15.0 and $15.5 billion compared with $14.6 billion in 2012.

Currently, Lear retains a Zacks Rank #3 (Hold). While we remain on the sidelines about the company, stocks from the same industry that warrant a look include Denso Corp. (DNZOY), Visteon Corp. (VC - Snapshot Report) and STRATTEC Security Corporation (STRT - Snapshot Report).. All of them carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%