We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lear (LEA) Q4 Earnings Lag Estimates, Revenues Rise Y/Y
Read MoreHide Full Article
Lear Corp (LEA - Free Report) reported fourth-quarter 2023 adjusted earnings of $3.03 per share, which increased from $2.81 recorded in the year-ago quarter. The bottom line however missed the Zacks Consensus Estimate of $3.07 per share.
In the reported quarter, revenues increased 9% year over year to $5.8 billion. The top line also beat the Zacks Consensus Estimate of $5.65 billion.
Lear Corporation Price, Consensus and EPS Surprise
Sales of the Seating segment totaled $4.34 billion in the reported quarter, reflecting a 7.4% increase from the year-ago quarter and surpassing the Zacks Consensus Estimate of $4.21 billion, thanks to solid backlog and acquisition benefits. Adjusted segment earnings came in at $293.8 million, up from $275.1 million recorded in the year-ago quarter. The segment recorded adjusted margins of 6.8% of sales, which is in line with the previous year's quarter.
Sales in the E-Systems segment were $1.5 billion, up 12.8% year over year and ahead of the Zacks Consensus Estimate of $1.43 billion on a solid backlog. Adjusted segmental earnings amounted to $84 million, up from $63.9 million in the corresponding quarter of 2022. For the E-Systems segment, the adjusted margin was 5.6% of sales, up from 4.8% in the year-ago quarter.
Performance by Region
Sales in the North America region increased 1.3% year over year to $2.27 billion in the quarter under review and exceeded the Zacks Consensus Estimate of $2.25 billion.
Sales in the Europe and Africa region grew 19.2% year over year to $2.17 billion in the quarter. The metric also topped the Zacks Consensus Estimate of $2.04 billion.
Sales in the Asia region totaled $1.17 billion in the quarter, rising 7.3% year over year and surpassing the Zacks Consensus Estimate of $1.16 billion.
Sales in the South America region rose 0.5% year over year to $221.4 million in the quarter, outpacing the Zacks Consensus Estimate of $208 million.
Financial Position
The company had $1.2 billion in cash and cash equivalents as of Dec 31, 2023 compared with $1.11 billion recorded as of Dec 31, 2022. Long-term debt was $2.74 billion as of Dec 31, 2023 compared with a debt of $2.59 billion recorded as of Dec 31, 2022.
During the quarter under discussion, net cash provided by operating activities totaled $569.7 million, an improvement from $537.2 million in the corresponding quarter of 2022. In the reported period, its capital expenditure amounted to $193.2 million, down from $195.3 million. The company registered a free cash flow (“FCF”) of $376.5 million in the quarter under review compared with $341.9 million in the previous year’s quarter.
During the quarter, LEA repurchased 1,290,639 shares of its common stock for a total of $175 million. At the end of the quarter, Lear had a remaining share repurchase authorization of nearly $916 million, which will expire on Dec 31, 2024.
2024 Guidance
It projects its full-year net sales in the band of $24-$24.6 billion, up from $23.5 billion recorded in 2023. Core operating earnings are envisioned in the range of $1,155-$1,305 million, marking an uptick from $1,120 million generated in 2023.
Operating cash flow is projected to be between $1,275 million and $1,425 million compared with $1,249.3 million generated in 2023. Lear anticipates FCF in the band of $600-$750 million compared with $638.2 million generated in 2023. Capital spending is now forecasted to be around $675 million, up from $626.5 million registered in the year-ago quarter. Adjusted EBITDA is envisioned to be between $1,795 million and $1,945 million.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 16 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 22 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past seven days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Lear (LEA) Q4 Earnings Lag Estimates, Revenues Rise Y/Y
Lear Corp (LEA - Free Report) reported fourth-quarter 2023 adjusted earnings of $3.03 per share, which increased from $2.81 recorded in the year-ago quarter. The bottom line however missed the Zacks Consensus Estimate of $3.07 per share.
In the reported quarter, revenues increased 9% year over year to $5.8 billion. The top line also beat the Zacks Consensus Estimate of $5.65 billion.
Lear Corporation Price, Consensus and EPS Surprise
Lear Corporation price-consensus-eps-surprise-chart | Lear Corporation Quote
Segment Performance
Sales of the Seating segment totaled $4.34 billion in the reported quarter, reflecting a 7.4% increase from the year-ago quarter and surpassing the Zacks Consensus Estimate of $4.21 billion, thanks to solid backlog and acquisition benefits. Adjusted segment earnings came in at $293.8 million, up from $275.1 million recorded in the year-ago quarter. The segment recorded adjusted margins of 6.8% of sales, which is in line with the previous year's quarter.
Sales in the E-Systems segment were $1.5 billion, up 12.8% year over year and ahead of the Zacks Consensus Estimate of $1.43 billion on a solid backlog. Adjusted segmental earnings amounted to $84 million, up from $63.9 million in the corresponding quarter of 2022. For the E-Systems segment, the adjusted margin was 5.6% of sales, up from 4.8% in the year-ago quarter.
Performance by Region
Sales in the North America region increased 1.3% year over year to $2.27 billion in the quarter under review and exceeded the Zacks Consensus Estimate of $2.25 billion.
Sales in the Europe and Africa region grew 19.2% year over year to $2.17 billion in the quarter. The metric also topped the Zacks Consensus Estimate of $2.04 billion.
Sales in the Asia region totaled $1.17 billion in the quarter, rising 7.3% year over year and surpassing the Zacks Consensus Estimate of $1.16 billion.
Sales in the South America region rose 0.5% year over year to $221.4 million in the quarter, outpacing the Zacks Consensus Estimate of $208 million.
Financial Position
The company had $1.2 billion in cash and cash equivalents as of Dec 31, 2023 compared with $1.11 billion recorded as of Dec 31, 2022. Long-term debt was $2.74 billion as of Dec 31, 2023 compared with a debt of $2.59 billion recorded as of Dec 31, 2022.
During the quarter under discussion, net cash provided by operating activities totaled $569.7 million, an improvement from $537.2 million in the corresponding quarter of 2022. In the reported period, its capital expenditure amounted to $193.2 million, down from $195.3 million. The company registered a free cash flow (“FCF”) of $376.5 million in the quarter under review compared with $341.9 million in the previous year’s quarter.
During the quarter, LEA repurchased 1,290,639 shares of its common stock for a total of $175 million. At the end of the quarter, Lear had a remaining share repurchase authorization of nearly $916 million, which will expire on Dec 31, 2024.
2024 Guidance
It projects its full-year net sales in the band of $24-$24.6 billion, up from $23.5 billion recorded in 2023. Core operating earnings are envisioned in the range of $1,155-$1,305 million, marking an uptick from $1,120 million generated in 2023.
Operating cash flow is projected to be between $1,275 million and $1,425 million compared with $1,249.3 million generated in 2023. Lear anticipates FCF in the band of $600-$750 million compared with $638.2 million generated in 2023. Capital spending is now forecasted to be around $675 million, up from $626.5 million registered in the year-ago quarter. Adjusted EBITDA is envisioned to be between $1,795 million and $1,945 million.
Zacks Rank & Key Picks
LEA currently carries a Zacks Rank #4 (Sell).
Some top-ranked players in the auto space are Honda Motor Co., Ltd. (HMC - Free Report) , Oshkosh Corporation (OSK - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for HMC’s 2024 sales and earnings implies year-over-year growth of 14.8% and 37.3%, respectively. The EPS estimates for 2024 and 2025 have moved up 16 cents and 22 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 6.7% and 4%, respectively. The EPS estimates for 2024 and 2025 have improved 8 cents and 22 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 and 2025 have improved 22 cents each in the past seven days.