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Lear (LEA) Q4 Earnings and Sales Trump Estimates, Up Y/Y
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Lear Corporation’s (LEA - Free Report) fourth-quarter 2020 adjusted earnings came in at $3.66 per share, surpassing the Zacks Consensus Estimate of $3.37. Higher-than-expected revenues from both the company’s segments led to the outperformance. It recorded earnings of $2.64 per share in fourth-quarter 2019. For the reported quarter, revenues increased 8.3% year over year to $5,243.2 million. The top line also beat the Zacks Consensus Estimate of $5,014 million.
Lear Corporation Price, Consensus and EPS Surprise
Sales in the Seating segment totaled $3,899.6 million for fourth-quarter 2020, reflecting an increase from the year-ago quarter’s $3,629.1 million. Moreover, the metric surpassed the Zacks Consensus Estimate of $3,659 million. Adjusted segmental earnings came in at $295.2 million, higher than $212.7 million recorded in the fourth quarter of 2019. The segment recorded adjusted margins of 7.6% of sales.
Sales in the E-Systems segment summed $1,343.6 million, up 13% year over year. The figure also topped the consensus mark of $1,244 million. Adjusted segmental earnings amounted to $102.6 million, higher than $91.9 million recorded in the year-ago quarter. For the E-Systems segment, adjusted margin was 7.6% of sales.
Financial Position
The company had $1,306.7 million of cash and cash equivalents as of Dec 31, 2020 compared with $1,487.7 million recorded in the corresponding period of 2019. It had a long-term debt of $2,300.3 million as of Dec 31, 2020 compared with $2,293.7 million recorded in the comparable period of 2019.
At third quarter-end, net cash provided by operating activities totaled $400.8 million, down from $485 million generated in the year-ago quarter. For the reported period, its capital expenditure amounted to $167 million, down from $193.8 million in the prior-year quarter. Free cash flow (FCF) came in at $233.8 million, lower than $291.2 million generated in the corresponding period of 2019.
2021 Guidance
Full-year net sales are expected between $19.8 billion and $20.8 billion. Core operating earnings are forecast in the band of $1,130-$1,300 million. Capital spending is anticipated to be $600 million. FCF is envisioned in the range of $550-$700 million. Lear — whose peers include Magna International (MGA - Free Report) , Adient PLC (ADNT - Free Report) and American Axle and Manufacturing (AXL - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Lear (LEA) Q4 Earnings and Sales Trump Estimates, Up Y/Y
Lear Corporation’s (LEA - Free Report) fourth-quarter 2020 adjusted earnings came in at $3.66 per share, surpassing the Zacks Consensus Estimate of $3.37. Higher-than-expected revenues from both the company’s segments led to the outperformance. It recorded earnings of $2.64 per share in fourth-quarter 2019. For the reported quarter, revenues increased 8.3% year over year to $5,243.2 million. The top line also beat the Zacks Consensus Estimate of $5,014 million.
Lear Corporation Price, Consensus and EPS Surprise
Lear Corporation price-consensus-eps-surprise-chart | Lear Corporation Quote
Segment Performances
Sales in the Seating segment totaled $3,899.6 million for fourth-quarter 2020, reflecting an increase from the year-ago quarter’s $3,629.1 million. Moreover, the metric surpassed the Zacks Consensus Estimate of $3,659 million. Adjusted segmental earnings came in at $295.2 million, higher than $212.7 million recorded in the fourth quarter of 2019. The segment recorded adjusted margins of 7.6% of sales.
Sales in the E-Systems segment summed $1,343.6 million, up 13% year over year. The figure also topped the consensus mark of $1,244 million. Adjusted segmental earnings amounted to $102.6 million, higher than $91.9 million recorded in the year-ago quarter. For the E-Systems segment, adjusted margin was 7.6% of sales.
Financial Position
The company had $1,306.7 million of cash and cash equivalents as of Dec 31, 2020 compared with $1,487.7 million recorded in the corresponding period of 2019. It had a long-term debt of $2,300.3 million as of Dec 31, 2020 compared with $2,293.7 million recorded in the comparable period of 2019.
At third quarter-end, net cash provided by operating activities totaled $400.8 million, down from $485 million generated in the year-ago quarter. For the reported period, its capital expenditure amounted to $167 million, down from $193.8 million in the prior-year quarter. Free cash flow (FCF) came in at $233.8 million, lower than $291.2 million generated in the corresponding period of 2019.
2021 Guidance
Full-year net sales are expected between $19.8 billion and $20.8 billion. Core operating earnings are forecast in the band of $1,130-$1,300 million. Capital spending is anticipated to be $600 million. FCF is envisioned in the range of $550-$700 million. Lear — whose peers include Magna International (MGA - Free Report) , Adient PLC (ADNT - Free Report) and American Axle and Manufacturing (AXL - Free Report) — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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