Back to top

Image: Bigstock

Unlocking Lear (LEA) International Revenues: Trends, Surprises, and Prospects

Read MoreHide Full Article

Have you looked into how Lear (LEA - Free Report) performed internationally during the quarter ending March 2025? Considering the widespread global presence of this automotive seating and electrical distribution systems company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

In our recent assessment of LEA's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.

The company's total revenue for the quarter amounted to $5.56 billion, showing decrease of 7.2%. We will now explore the breakdown of LEA's overseas revenue to assess the impact of its international operations.

A Dive into LEA's International Revenue Trends

South America accounted for 3.20% of the company's total revenue during the quarter, translating to $177.8 million. Revenues from this region represented a surprise of -18.54%, with Wall Street analysts collectively expecting $218.26 million. When compared to the preceding quarter and the same quarter in the previous year, South America contributed $213.5 million (3.74%) and $205.2 million (3.42%) to the total revenue, respectively.

Asia generated $1.07 billion in revenues for the company in the last quarter, constituting 19.27% of the total. This represented a surprise of -0.53% compared to the $1.08 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $1.2 billion (21.06%), and in the year-ago quarter, it contributed $1.06 billion (17.68%) to the total revenue.

During the quarter, Europe and Africa contributed $2.06 billion in revenue, making up 37.09% of the total revenue. When compared to the consensus estimate of $1.92 billion, this meant a surprise of +7.31%. Looking back, Europe and Africa contributed $1.98 billion, or 34.66%, in the previous quarter, and $2.25 billion, or 37.60%, in the same quarter of the previous year.

Anticipated Revenues in Overseas Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Lear will report a total revenue of $5.69 billion, which reflects a decline of 5.4% from the same quarter in the previous year. The revenue contributions are expected to be 4.1% from South America ($232.79 million), 19.4% from Asia ($1.1 billion) and 36.2% from Europe and Africa ($2.06 billion).

For the full year, the company is projected to achieve a total revenue of $22.13 billion, which signifies a fall of 5% from the last year. The share of this revenue from various regions is expected to be: South America at 4% ($889.74 million), Asia at 19.6% ($4.33 billion) and Europe and Africa at 35.7% ($7.91 billion).

Final Thoughts

Lear's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

At present, Lear holds a Zacks Rank #4 (Sell). This ranking implies that its near-term performance might underperform the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Exploring Recent Trends in Lear's Stock Price

Over the past month, the stock has seen an increase of 20.7% in its value, whereas the Zacks S&P 500 composite has posted an increase of 9.1%. The Zacks Auto-Tires-Trucks sector, Lear's industry group, has ascended 20.7% over the identical span. In the past three months, there's been a decline of 1.6% in the company's stock price, against a fall of 3.1% in the S&P 500 index. The broader sector has declined by 2.3% during this interval.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lear Corporation (LEA) - free report >>

Published in