Back to top

Image: Bigstock

Lear Corp (LEA) to Report Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

Lear Corp. (LEA - Free Report) is set to release fourth-quarter and full year 2017 results, before the market opens on Jan 26.

Last quarter, the company delivered a positive earnings surprise of 4.2%. In fact, the same was registered in each of the trailing four quarters, with an average beat of 7.5%.

Lear Corporation has a long-term growth rate of 7.1%. In the past six months, shares of the company outperformed the industry it belongs to. Over this time frame, shares of the company grew 32.7%, whereas the industry rose 21.6%.

Let’s see how things have shaped up for the forthcoming announcement.

Lear Corporation Price and EPS Surprise

Lear Corporation Price and EPS Surprise | Lear Corporation Quote

Factors to Consider

For 2017, Lear Corp. has projected vehicle production in China to be around 26.3 million, whereas this figure was 17 million in 2012. For the year 2017, the company expects revenues from the seating segment and E-systems to be around $3.1 billion and $1 billion, respectively, whereas in 2012, these figures were $1.9 billion and $0.5 billion, respectively.

For 2018, Lear Corp. has projected sales in the range of $21.4-$21.6 billion and core operating earnings in the range of $1,750-$1.775 million.

The company expects global vehicle production to improve 2%, year over year in 2018. An adjusted net income is also expected to be in the range of $1.23-$1.25 billion in 2018.

Earnings Whispers

Our proven model does not conclusively show whether Lear Corp. is likely to beat or miss estimates this quarter because it does not have the right combination of the two key ingredients.

Zacks ESP: The Earnings ESP for Lear Corp. is -0.80% because the Most Accurate estimate of $4.22 is pegged below the Zacks Consensus Estimate of $4.26.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Lear Corp. carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have significantly higher chances of an earnings beat. Meanwhile, we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few other stocks in the auto industry you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Visteon Corporation (VC - Free Report) has an earnings ESP of +3.81% and a Zacks Rank #3. The company is expected to report fourth-quarter 2017 financial results on Feb 22. You can see the complete list of today’s Zacks #1 Rank stocks here.

Genuine Parts Company (GPC - Free Report) has an earnings ESP of +4.83% and a Zacks Rank of 3. The company intends to report fourth-quarter 2017 financial results on Feb 20.

Fiat Chrysler Automobiles N.V. has an earnings ESP of +18.80% and a Zacks Rank #2. The company plans to report fourth-quarter 2017 financial results on Jan 25.
 
Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Genuine Parts Company (GPC) - $25 value - yours FREE >>

Lear Corporation (LEA) - $25 value - yours FREE >>

Visteon Corporation (VC) - $25 value - yours FREE >>

Published in