Company Overview - Lear (LEA) is expected to report earnings for the quarter ended March 2025, with a consensus estimate of $2.61 per share, reflecting a year-over-year decline of 17.9% [3] - Revenues are anticipated to be $5.56 billion, down 7.3% from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on May 6, 2025, and could influence stock movement based on whether actual results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised 5.6% lower in the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP for Lear is +0.75%, suggesting a potential positive deviation from the consensus estimate [10][11] - However, Lear currently holds a Zacks Rank of 4 (Sell), complicating the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Lear exceeded the expected EPS of $2.59 by delivering $2.94, resulting in a surprise of +13.51% [12] - Over the past four quarters, Lear has beaten consensus EPS estimates consistently [13] Industry Context - In the Zacks Automotive - Original Equipment industry, Magna (MGA) is also expected to report earnings of $0.90 per share, down 16.7% year-over-year, with revenues projected at $9.53 billion, a decrease of 13.2% [17] - Magna's consensus EPS estimate has been revised 3.9% lower, but it has a higher Most Accurate Estimate leading to an Earnings ESP of 6.70% [18]

Group 1 - The article discusses the author's long position in shares of MGA, LEA, and ALV, indicating a positive outlook on these companies [1] - It emphasizes the importance of conducting due diligence and research before making any investment decisions, particularly in high-risk trading styles [2] - The article clarifies that past performance does not guarantee future results, and opinions expressed may not reflect the views of Seeking Alpha as a whole [3]

Group 1 - Lear Corporation will participate in a virtual fireside chat on March 18, 2025, during the Wolfe Research Virtual Autos Summit [1] - The webcast will begin at 10:00 AM EDT and will last approximately 40 minutes [1] - Lear Corporation is a global leader in automotive technology, specializing in Seating and E-Systems [2] Group 2 - Lear Corporation is headquartered in Southfield, Michigan, and serves every major automaker globally [2] - The company ranks 174 on the Fortune 500 list [2] - Lear's commitment includes innovation, operational excellence, and sustainability, aiming to enhance in-vehicle experiences [2]

Core Insights - Lear Corporation has appointed Julian Blissett, former Executive Vice President and President of GM China, to its Board of Directors, enhancing its strategic and operational capabilities [1][2] - Blissett brings over 28 years of experience from GM, including significant leadership in China, which is expected to contribute to Lear's growth and success [1] - Lear Corporation is recognized for its operational excellence and innovative strategies in the automotive industry, aiming to enhance in-vehicle experiences globally [2] Company Overview - Lear Corporation is a global leader in automotive technology, specializing in Seating and E-Systems, and serves every major automaker worldwide [2] - The company is headquartered in Southfield, Michigan, and employs a diverse team across 37 countries, focusing on innovation, operational excellence, and sustainability [2] - Lear ranks 174 on the Fortune 500, indicating its significant presence and influence in the automotive sector [2]

Company Operations and Structure - Lear Corporation operates 255 manufacturing, engineering, and administrative locations across 37 countries, with 68% of manufacturing facilities and 86% of employees located in low-cost countries[18]. - The company serves all major automotive manufacturers, with automotive content on over 480 vehicle nameplates worldwide[21]. - The company has made several strategic acquisitions, including I.G. Bauerhin for approximately $175 million in April 2023, enhancing its thermal comfort systems portfolio[27]. - The company has formed sixteen operating joint ventures in five countries, primarily in Asia, to expand market presence and product offerings[115]. - The company holds approximately 2,800 patents and patent applications pending, indicating a strong intellectual property portfolio[109]. Financial Performance - North America sales increased by 3% to $9,749.1 million in 2024, while total sales decreased by 1% to $23,306.0 million[31]. - General Motors accounted for 22% of the company's net sales in 2024, while Ford, Volkswagen, and Mercedes-Benz each represented 11%, and Jaguar Land Rover and Stellantis each accounted for 9%[101]. - Net sales for the year ended December 31, 2024, consisted of 23% from passenger cars, 56% from crossover and sport utility vehicles, and 21% from trucks and vans[105]. - Net sales from consolidated joint ventures accounted for approximately 8% of total net sales in 2024, with investments in non-consolidated joint ventures totaling $221 million[115]. Production and Market Trends - In 2024, total light vehicle production is projected at 88,133.9 thousand units, a 1% decrease from 2023's 89,073.7 thousand units[30]. - The North American light vehicle production is expected to be 15,467.2 thousand units in 2024, down 1% from 15,682.8 thousand units in 2023[30]. - Battery electric vehicle production rose to 11.5 million units in 2024, up from 10.5 million units in 2023, with the market expected to represent 17% of global light vehicle production by 2025[32]. - Crossover and sport utility vehicle production grew to approximately 48% of total vehicle production in 2024, up from 37% five years ago[34]. Product Development and Innovation - Lear Corporation's E-Systems segment includes high-voltage power distribution products, which control the flow of high-voltage power in electrified vehicles, including battery disconnect units[19]. - The ComfortFlex and ComfortMax Seat modules can reduce sub-components by up to 50% and increase airflow directly to the occupant by up to 40% compared to current designs[35]. - The company has developed sustainable products such as FlexAir, a 100% recyclable alternative to traditional foam[38]. - The company has developed a zero gravity seat for second row occupants, featuring a 65-degree recline and various comfort enhancements, which is increasingly important in the China market[54]. - The company launched a new technology for customizable leather designs in 2024, improving comfort and style while enabling airflow for ventilated seats[52]. Sustainability Initiatives - The company aims for a 50% reduction in Scope 1 and Scope 2 carbon emissions by 2030 and aspires to achieve carbon neutrality by 2050[79]. - The company employs standardized processes globally to enhance energy efficiency and reduce greenhouse gas emissions, with a focus on renewable energy usage[80]. - The company is committed to sourcing raw materials sustainably, including leather, and has implemented a No Deforestation Policy for its supply chain[84]. - The company has solar arrays operating at 20 sites across Europe, South America, and China, contributing to its renewable energy strategy[82]. - The company is committed to sustainability and adheres to various environmental regulations, while also offering products that advance sustainability[112]. Employee Engagement and Training - The company’s employee engagement program, Together We Win, focuses on operational excellence and employee involvement metrics[91]. - The company delivered over six million hours of training in 2023, emphasizing safety, development, and leadership across its global operations[95]. Strategic Focus and Future Outlook - The company is focused on investing in product and process innovations to drive growth and profitability[19]. - The company is expanding its E-Systems segment, focusing on high-voltage power distribution products and exiting certain electronics product lines that do not provide sustainable returns[59]. - The company has developed strategies to mitigate the impact of volatile raw material and labor costs, although these strategies may not fully offset adverse impacts[106]. - The current sales backlog is based on independent industry projections and internal estimates, subject to risks including vehicle production volumes and foreign exchange rates[104].

Core Viewpoint - Lear Corp. (LEA) has experienced a significant decline in share price, dropping 12.4% over the past six months, underperforming both the Zacks Auto, Tires and Trucks sector and the Zacks Automotive – Original Equipment industry [1][4]. Group 1: Performance and Challenges - Lear's performance has been negatively impacted by substantial cuts in electric vehicle (EV) production volumes by Original Equipment Manufacturers (OEMs), resulting from an industry-wide slowdown and demand uncertainty [4][5]. - The company has faced delayed EV launches and canceled programs, which have further hindered growth prospects and led to a backlog reduction for 2025 [4][6]. - Declining volumes on key platforms in China, such as the Buick Regal, BMW X3 and iX3, and Volvo XC40, have also contributed to the company's poor performance [5]. Group 2: Restructuring Efforts - In response to these challenges, Lear has initiated restructuring efforts, including the closure or sale of 13 facilities, which represents a 4% reduction in total facilities [6]. - The company plans to close or sell an additional five facilities, primarily in Europe, due to excess capacity, although these efforts may incur costs and disrupt short-term profitability [6]. Group 3: Financial Guidance for 2025 - Lear projects its full-year 2025 net sales to be between $21.88 billion and $22.88 billion, indicating a decrease of 4% at the midpoint compared to 2024 [7]. - Core operating earnings are expected to range from $915 million to $1.175 billion, reflecting a year-over-year decrease of 5% at the midpoint [7]. - Operating cash flow is anticipated to be between $1.06 billion and $1.26 billion, while free cash flow is projected to be in the range of $430 million to $630 million [8]. Group 4: Earnings Estimates - The Zacks Consensus Estimate for LEA's first-quarter 2025 EPS is $2.90, indicating a year-over-year decline of 8.8% [10]. - The second-quarter 2025 EPS estimate is $3.26, reflecting a year-over-year decline of 9.4% [10]. - The consensus estimates for LEA's 2025 and 2026 EPS have decreased by 2.63% and 1.12%, respectively, now pegged at $12.94 and $14.97 [10]. Group 5: Investment Outlook - Given the multiple headwinds and weak outlook for 2025, Lear's stock is currently considered unattractive for investors [11].

Core Insights - Lear's international revenue performance is crucial for assessing its financial resilience and growth prospects [1][2] - The company's dependence on global markets presents both opportunities and challenges [10][11] Revenue Performance - Total revenue for the quarter reached $5.71 billion, a decline of 2.2% year-over-year [4] - South America contributed $213.5 million, or 3.74% of total revenue, down from $233.5 million (4.18%) in the previous quarter [5] - Europe and Africa accounted for $1.98 billion, or 34.66% of total revenue, exceeding expectations by 6.76% [6] - Asia contributed $1.2 billion, or 21.06% of total revenue, also surpassing analyst expectations by 4.47% [7] Future Revenue Forecasts - Analysts project total revenue of $5.48 billion for the current fiscal quarter, an 8.5% decline from the previous year [8] - For the full year, total revenue is expected to be $22.37 billion, down 4% from the previous year [9] - Revenue contributions are anticipated to be 4% from South America ($897.45 million), 35.7% from Europe and Africa ($7.98 billion), and 19.4% from Asia ($4.35 billion) [9] Stock Market Performance - Over the past month, Lear's stock gained 4.1%, slightly underperforming the S&P 500's 4.3% increase [14] - In the last three months, the stock increased by 4.8%, outperforming the S&P 500's 1.5% increase [14]

Shares of Lear Corp. (LEA) shares have increased over 3% since the company released its fourth-quarter 2024 results on Feb. 6, before the opening bell. The company reported adjusted earnings per share of $2.94, which beat the Zacks Consensus Estimate of $2.59, thanks to higher-than-expected revenues across both segments. The bottom line, however, decreased from $3.03 reported in the year-ago quarter. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the reported quarter, revenues dec ...

Lear Corporation (NYSE:LEA) Q4 2024 Results Conference Call February 6, 2025 9:00 AM ET Company Participants Tim Brumbaugh - Vice President, Investor Relations Ray Scott - President and Chief Executive Officer Jason Cardew - Senior Vice President and Chief Financial Officer Conference Call Participants John Murphy - BOA Colin Langan - Wells Fargo Dan Levy - Barclays Joe Spak - UBS Mark Delaney - Goldman Sachs Operator Good morning, everyone, and welcome to the Lear Corporation Fourth Quarter and Full Year 2 ...

Lear (LEA) reported $5.71 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 2.2%. EPS of $2.94 for the same period compares to $3.03 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $5.51 billion, representing a surprise of +3.65%. The company delivered an EPS surprise of +13.51%, with the consensus EPS estimate being $2.59.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...