Lear Co. (LEA) Expected to Post Earnings of $4.14 Per Share
Analysts expect Lear Co. (NYSE:LEA) to report earnings of $4.14 per share for the current quarter, according to Zacks. Six analysts have issued estimates for Lear’s earnings, with estimates ranging from $3.77 to $4.65. Lear posted earnings per share of $5.10 in the same quarter last year, which suggests a negative year over year growth rate of 18.8%. The business is scheduled to issue its next earnings results before the market opens on Friday, April 26th.
According to Zacks, analysts expect that Lear will report full year earnings of $17.85 per share for the current year, with EPS estimates ranging from $17.00 to $18.24. For the next year, analysts expect that the business will post earnings of $19.46 per share, with EPS estimates ranging from $15.00 to $20.95. Zacks Investment Research’s EPS averages are a mean average based on a survey of research firms that that provide coverage for Lear.
Lear (NYSE:LEA) last posted its quarterly earnings results on Friday, January 25th. The auto parts company reported $4.05 EPS for the quarter, beating the Zacks’ consensus estimate of $3.96 by $0.09. Lear had a net margin of 5.37% and a return on equity of 27.12%. The firm had revenue of $4.94 billion for the quarter, compared to analysts’ expectations of $4.99 billion. During the same quarter in the prior year, the company posted $4.38 earnings per share. The business’s revenue for the quarter was down 7.9% on a year-over-year basis.
In related news, EVP Terrence B. Larkin sold 18,985 shares of the business’s stock in a transaction dated Wednesday, February 13th. The shares were sold at an average price of $155.28, for a total value of $2,947,990.80. Following the sale, the executive vice president now directly owns 2,752 shares in the company, valued at approximately $427,330.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, VP Shari L. Burgess sold 3,500 shares of the business’s stock in a transaction dated Tuesday, February 19th. The stock was sold at an average price of $156.00, for a total transaction of $546,000.00. The disclosure for this sale can be found here. 0.37% of the stock is owned by insiders.
A number of hedge funds have recently made changes to their positions in LEA. Norges Bank acquired a new position in Lear in the 4th quarter valued at about $653,026,000. Oregon Public Employees Retirement Fund raised its stake in Lear by 11,007.8% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 4,898,551 shares of the auto parts company’s stock valued at $40,000 after purchasing an additional 4,854,451 shares during the last quarter. Pzena Investment Management LLC acquired a new position in Lear in the 4th quarter valued at about $339,861,000. Massachusetts Financial Services Co. MA raised its stake in Lear by 140.4% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 2,841,520 shares of the auto parts company’s stock valued at $349,110,000 after purchasing an additional 1,659,488 shares during the last quarter. Finally, Harris Associates L P raised its stake in Lear by 65.9% in the 4th quarter. Harris Associates L P now owns 3,424,807 shares of the auto parts company’s stock valued at $420,772,000 after purchasing an additional 1,360,164 shares during the last quarter. 98.09% of the stock is owned by hedge funds and other institutional investors.
Shares of NYSE:LEA traded up $0.36 during trading on Friday, reaching $157.83. 391,611 shares of the stock traded hands, compared to its average volume of 567,447. Lear has a 52-week low of $114.45 and a 52-week high of $206.36. The company has a quick ratio of 1.13, a current ratio of 1.40 and a debt-to-equity ratio of 0.45. The stock has a market cap of $9.85 billion, a price-to-earnings ratio of 8.66, a PEG ratio of 3.54 and a beta of 1.32.
Lear announced that its board has approved a stock repurchase program on Thursday, February 7th that allows the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization allows the auto parts company to repurchase up to 15.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers worldwide. It operates in two segments, Seating and E-Systems. The Seating segment offers leather and fabric products, seat trim covers, recliner mechanisms, seat tracks and foams, seat structures and mechanisms, and headrests for automobiles and light trucks, compact cars, and sport utility vehicles; and heating and cooling systems.
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