Core Insights - Lear Corp. (LEA) reported Q2 2025 adjusted earnings per share of $3.47, exceeding the Zacks Consensus Estimate of $3.23, driven by strong performance in the Seating and E-Systems segments, although down from $3.60 in the same quarter last year [1][9] - Total revenues for the quarter were flat year-over-year at $6.03 billion, surpassing the Zacks Consensus Estimate of $5.89 billion [1][9] Segmental Performance - The Seating segment generated sales of $4.47 billion, slightly up from $4.45 billion year-over-year, and exceeded the Zacks Consensus Estimate of $4.37 billion. Adjusted segment earnings were $298.9 million, down from $302.1 million year-over-year but above the estimate of $276 million, with adjusted margins at 6.7% [2] - The E-Systems segment reported sales of $1.56 billion, a 0.6% decline year-over-year, but still above the Zacks Consensus Estimate of $1.52 billion. Adjusted earnings were $75.8 million, down from $82.2 million year-over-year, yet surpassing the estimate of $67 million, with adjusted margins at 4.9% [3] Performance by Region - North America sales decreased by 1.3% year-over-year to $2.52 billion, exceeding the Zacks Consensus Estimate of $2.44 billion [4] - Europe and Africa region sales fell by 0.39% year-over-year to $2.16 billion, beating the Zacks Consensus Estimate of $2.13 billion [4] - Asia region sales increased by 6.5% year-over-year to $1.14 billion, surpassing the Zacks Consensus Estimate of $1.13 billion [4] Financial Position & Other Tidbits - As of June 28, 2025, the company had $888 million in cash and cash equivalents, down from $1.05 billion at the end of 2024. Long-term debt increased to $2.76 billion [6] - Net cash used in operating activities for the quarter was $296.2 million, with a free cash flow (FCF) of $170.8 million [6] - During the quarter, Lear repurchased 271,117 shares for a total of $25 million, with nearly $1 billion remaining in share repurchase authorization [7] 2025 Guidance - Lear projects full-year net sales between $22.47 billion and $23.07 billion, with core operating earnings expected in the range of $955 million to $1,095 million. Operating cash flow is anticipated to be between $1.01 billion and $1.11 billion, with FCF projected between $420 million and $520 million and capital spending estimated at $590 million [9][10]

Core Insights - Lear's Q2 2025 earnings report showed both GAAP revenue and non-GAAP adjusted EPS exceeded analyst expectations, with revenue at $6.03 billion and adjusted EPS at $3.47 [1][2] - Despite the revenue and EPS beats, earnings and profit margins declined compared to the same quarter last year, indicating ongoing operational challenges [1][5] Financial Performance - Q2 2025 Non-GAAP EPS was $3.47, beating the estimate of $3.30 but down 3.6% from Q2 2024 [2] - GAAP EPS was $3.06, a slight increase of 1.3% from Q2 2024 [2] - GAAP revenue was $6.03 billion, surpassing the estimate of $5.92 billion and showing a marginal increase of 0.3% year-over-year [2] - Adjusted net income decreased by 8.7% to $188 million compared to $205.8 million in Q2 2024 [2] - Core operating earnings fell by 3.3% to $292 million from $302 million in Q2 2024 [2] - Free cash flow was reported at $171 million, a slight increase of 0.5% from $170 million [2] Business Segments - Lear operates in two main segments: Seating and E-Systems, with steady sales in both areas [5] - Seating sales saw a slight increase compared to Q2 2024, while E-Systems sales dipped by less than 1% [5] - Adjusted segment margins for Seating held at 6.7%, while E-Systems margins decreased to 4.9% from 5.3% in Q2 2024 [5] Geographic Performance - Lear experienced a notable 9% increase in vehicle production in China, while sales in North America and Europe/Africa declined [6] - Global vehicle production rose by 3%, but Lear's sales-weighted production remained flat, indicating challenges in demand shifts [6] Cash Position and Shareholder Returns - The company reported $888 million in cash and equivalents and $2.9 billion in liquidity at the end of the quarter [7] - Share repurchases totaled $25 million, with $41 million paid out in dividends [7] - Since 2011, the share repurchase program has reduced outstanding shares by approximately 57%, with about $1.0 billion remaining authorized for buybacks [7] Innovation and Strategic Focus - Lear is focusing on innovation in product design and automation, with partnerships like the one with Palantir to enhance profitability [8][9] - The company has secured new contracts in the E-Systems segment for integrated wiring and high-voltage systems, particularly with EV manufacturers [9] Guidance and Future Outlook - Management restored financial guidance for 2025, projecting net sales between $22.47 billion and $23.07 billion and free cash flow estimated at $420 million to $520 million [11] - The guidance assumes a 2% decrease in global industry production compared to 2024 on a Lear sales-weighted basis [11] - Ongoing international trade negotiations may introduce uncertainty in auto demand and production schedules [12]

Financial Data and Key Metrics Changes - The company reported $6 billion in revenue for Q2 2025, with core operating earnings of $292 million and an operating margin of 4.8% [5][25] - Adjusted earnings per share were $3.47, slightly down from $3.60 a year ago, while operating cash flow increased to $296 million from $291 million [5][26] - Full-year net performance outlook was increased by approximately $25 million to over $150 million, reflecting strong operating performance [7][39] Business Line Data and Key Metrics Changes - In the Seating segment, sales were $4.5 billion, a 1% increase year-over-year, while adjusted earnings were $299 million, down 1% [26] - The E Systems segment saw sales of $1.6 billion, also down 1% year-over-year, with adjusted earnings of $76 million, reflecting a decline in operating margins [27][28] - The company won multiple awards in both segments, including significant contracts with major automakers like BMW and Ford [9][10][11] Market Data and Key Metrics Changes - Global vehicle production increased by 3% year-over-year, but was flat on a Lear sales-weighted basis, with North American production down 3% and European production down 2% [23] - Production volumes in China increased by 9%, indicating a shift in market dynamics [23] Company Strategy and Development Direction - The company aims to extend its leadership in Seating, expand margins in E Systems, and enhance operational excellence through automation and restructuring [6][12] - Investments in digital tools and partnerships, such as with Palantir, are expected to drive efficiency gains and improve operational capabilities [8][16] - The focus remains on high-quality programs that generate strong risk-adjusted returns, particularly in the context of ongoing macroeconomic uncertainties [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business despite macro uncertainties, reinstating full-year guidance based on strong performance [7][39] - The company is cautious about customer production schedules, embedding a 2% discount in their outlook due to potential headwinds from tariffs and model changeovers [73][74] - Future cash flow expectations are impacted by tariff recovery timing and restructuring investments, with a focus on improving operational efficiency [93][94] Other Important Information - The company has successfully refinanced its $2 billion revolver, extending its maturity and strengthening its liquidity position [40][41] - The company plans to repurchase $250 million worth of stock for the full year, reflecting a commitment to returning excess cash to shareholders [42] Q&A Session Summary Question: Outlook on margin deceleration in the second half - Management acknowledged that the majority of margin deceleration is due to weaker volumes, but emphasized confidence in generating margin expansion through efficiency programs [46][47] Question: Details on awards from Ford - The component business won is for the next generation F-150 and F-250, with ongoing quoting processes for just-in-time business [54][67] Question: Clarification on performance metrics - Management confirmed that the increase in restructuring savings is primarily expected in the second half, with a strong performance anticipated in both segments [62][63] Question: Volume and sales outlook - The company noted a cautious approach to customer production schedules, reflecting uncertainty in the market and adjustments based on model changeovers [72][73] Question: Revenue from conquest award with EV OEM - The conquest award is expected to generate about $50 million in additional revenue starting late this year, with full effects seen in 2026 and 2027 [78][79]

Financial Data and Key Metrics Changes - The company reported $6 billion in revenue for Q2 2025, with core operating earnings of $292 million and an operating margin of 4.8% [5][25] - Adjusted earnings per share were $3.47, slightly down from $3.60 a year ago, while operating cash flow increased to $296 million from $291 million [5][26] - Full year net performance outlook was increased by approximately $25 million to over $150 million, reflecting strong operating performance [7][38] Business Line Data and Key Metrics Changes - In the Seating segment, sales were $4.5 billion, a 1% increase year-over-year, while adjusted earnings were $299 million, down 1% [26][27] - The E Systems segment reported sales of $1.6 billion, a 1% decrease year-over-year, with adjusted earnings of $76 million, down from $82 million [27][28] - The company won multiple awards in both segments, including significant contracts with major automakers like BMW and Ford [10][12] Market Data and Key Metrics Changes - Global vehicle production increased by 3% year-over-year, but was flat on a Lear sales-weighted basis due to declines in North America and Europe [24] - Production volumes in North America and Europe declined by 3% and 2%, respectively, while volumes in China increased by 9% [24] Company Strategy and Development Direction - The company aims to extend its leadership in Seating, expand margins in E Systems, and support sustainable value creation through disciplined capital allocation [6] - Investments in automation and restructuring are expected to drive efficiency and cost savings, with an estimated $90 million in additional savings anticipated in the second half of the year [21][38] - The partnership with Palantir is focused on enhancing digital and operational capabilities, contributing to efficiency gains [8][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business despite macroeconomic uncertainties, restoring full year guidance based on strong performance [7][43] - The company is cautious about customer production schedules, embedding a 2% discount in their guidance due to potential headwinds from tariffs and model changeovers [72][73] - Management highlighted the importance of maintaining strong relationships with customers to offset tariff impacts and drive margin improvements [43][44] Other Important Information - The company has reduced its global hourly headcount by nearly 20,000 or 11% since the end of 2023, contributing to cost savings [13][14] - The refinancing of a $2 billion revolver was completed, extending its maturity and strengthening liquidity [7][40] Q&A Session Summary Question: Outlook on margin deceleration in the second half - Management acknowledged a meaningful deceleration in margins due to weaker volumes but emphasized confidence in generating margin expansion through efficiency programs and cost reductions [47][48] Question: Details on awards from Ford - The component business won with Ford is for the next generation F-150 and F-250, with ongoing quoting for just-in-time business [54][66] Question: Volume and sales outlook - Management noted a cautious approach to customer production schedules, embedding a 2% discount in guidance due to anticipated headwinds from tariffs and model changeovers [72][73] Question: Revenue from conquest award with EV OEM - The conquest award is expected to generate about $50 million in additional revenue starting late this year, with full effects seen in 2026 and 2027 [78] Question: Clarification on cash flow outlook - The lower cash flow outlook is primarily due to earnings and tariff recovery timing, with potential improvements expected from finalized credit programs [89][90]

Financial Performance - Q2 2025 - Sales remained flat at $6 billion compared to Q2 2024[9] - Core operating earnings decreased to $292 million from $302 million in Q2 2024[9] - Adjusted earnings per share decreased to $3.47 from $3.60 in Q2 2024[9] - Operating cash flow increased to $296 million from $291 million in Q2 2024[9] Full Year 2025 Outlook - Revenue is expected to be between $22470 million and $23070 million[12] - Core operating earnings are projected to be between $955 million and $1095 million[12] Segment Performance - Q2 2025 - Seating sales increased slightly to $4474 million from $4447 million in Q2 2024[30] - E-Systems sales decreased to $1557 million from $1565 million in Q2 2024[35] Tariff Impact - Approximately $63 million in tariff recovery was achieved in H1 2025[46] - Gross tariff exposure is approximately $210 million[46]

Core Viewpoint - Lear (LEA) reported quarterly earnings of $3.47 per share, exceeding the Zacks Consensus Estimate of $3.23 per share, although down from $3.6 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +7.43%, following a previous quarter where earnings were $3.12 per share against an expectation of $2.64, resulting in a surprise of +18.18% [2] - Lear's revenues for the quarter reached $6.03 billion, surpassing the Zacks Consensus Estimate by 2.38%, and showing a slight increase from $6.01 billion year-over-year [3] - Over the last four quarters, Lear has consistently exceeded consensus EPS and revenue estimates [2][3] Stock Performance - Since the beginning of the year, Lear shares have increased by approximately 14.2%, outperforming the S&P 500's gain of 8.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.06 on revenues of $5.57 billion, and for the current fiscal year, it is $12.17 on revenues of $22.51 billion [8] - The outlook for the automotive industry, where Lear operates, is favorable, with the Automotive - Original Equipment sector ranking in the top 35% of Zacks industries [9]

[Lear Reports Second Quarter 2025 Results](index=1&type=section&id=Lear%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Lear reported stable Q2 2025 revenue of **$6.0 billion**, with slight declines in net income and core operating earnings, and strong free cash flow generation Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $6.0 billion | $6.0 billion | | Net Income | $165 million | $173 million | | Adjusted Net Income | $188 million | $206 million | | Core Operating Earnings | $292 million | $302 million | | EPS | $3.06 | $3.02 | | Adjusted EPS | $3.47 | $3.60 | | Free Cash Flow | $171 million | $170 million | - The company restored its full-year guidance, projecting revenue between **$22.47 billion** and **$23.07 billion**, and core operating earnings from **$955 million** to **$1.095 billion**[4](index=4&type=chunk) - Capital return activities in Q2 included repurchasing **$25 million** of shares and paying **$41 million** in dividends[4](index=4&type=chunk) - Secured significant new business, including a conquest complete seat program with BMW in Asia, two conquest seat component awards with Ford, and conquest wire business with a global EV automaker[4](index=4&type=chunk) [Second Quarter Financial Results Analysis](index=2&type=section&id=Second%20Quarter%20Financial%20Results%20Analysis) Q2 2025 sales remained flat at **$6.0 billion** year-over-year, with core operating earnings decreasing to **$292 million** due to lower production volumes - Global vehicle production increased **3%** year-over-year, remaining flat on a Lear sales-weighted basis, with North America down **3%**, Europe down **2%**, and China up **9%**[6](index=6&type=chunk) - Excluding impacts from commodities, foreign exchange, and tariffs, sales decreased by **1%**, attributed to reduced production on key Lear platforms[6](index=6&type=chunk) - Core operating earnings were **$292 million**, or **4.8%** of sales, compared to **$302 million**, or **5.0%** of sales, in Q2 2024[7](index=7&type=chunk) - Net cash from operating activities was **$296 million**, and free cash flow was **$171 million** for the quarter[8](index=8&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) In Q2 2025, Seating segment sales grew slightly with marginal margin compression, while E-Systems sales declined with reduced adjusted margins [Seating](index=14&type=section&id=Seating) The Seating segment reported Q2 2025 net sales of **$4.47 billion**, a slight increase, with adjusted margins marginally decreasing to **6.7%** Seating Segment Performance (Q2) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $4,473.9 million | $4,447.0 million | | Adjusted Segment Earnings | $298.9 million | $302.1 million | | Adjusted Segment Margins | 6.7% | 6.8% | Seating Segment Performance (Six Months) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net Sales | $8,625.0 million | $8,924.6 million | | Adjusted Segment Earnings | $578.8 million | $597.0 million | | Adjusted Segment Margins | 6.7% | 6.7% | [E-Systems](index=14&type=section&id=E-Systems) The E-Systems segment's Q2 2025 net sales slightly decreased to **$1.56 billion**, with adjusted margins contracting to **4.9%** E-Systems Segment Performance (Q2) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $1,556.5 million | $1,565.4 million | | Adjusted Segment Earnings | $75.8 million | $82.2 million | | Adjusted Segment Margins | 4.9% | 5.3% | E-Systems Segment Performance (Six Months) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net Sales | $2,965.7 million | $3,082.4 million | | Adjusted Segment Earnings | $149.6 million | $159.3 million | | Adjusted Segment Margins | 5.0% | 5.2% | [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) In Q2 2025, Lear repurchased **$25 million** in shares, with **$1.0 billion** remaining authorized, contributing to a **57%** reduction in shares outstanding since 2011 - In Q2 2025, the company repurchased **271,117** shares for a total of **$25 million**[10](index=10&type=chunk) - At the end of Q2, approximately **$1.0 billion** remained authorized for future share repurchases, representing about **18%** of the company's market capitalization[10](index=10&type=chunk) - Since 2011, Lear has repurchased **59.6 million** shares for **$5.6 billion**, at an average price of **$94.53** per share, reducing total shares outstanding by approximately **57%**[11](index=11&type=chunk) [2025 Financial Outlook](index=3&type=section&id=2025%20Financial%20Outlook) Lear restored its full-year 2025 guidance, projecting net sales between **$22.47 billion** and **$23.07 billion** and free cash flow from **$420 million** to **$520 million**, assuming a **2%** decline in global production Full Year 2025 Financial Outlook | Metric | Guidance Range (in millions) | | :--- | :--- | | Net Sales | $22.47 billion - $23.07 billion | | Core Operating Earnings | $955 million - $1.095 billion | | Adjusted EBITDA | $1.57 billion - $1.71 billion | | Operating Cash Flow | $1.01 billion - $1.11 billion | | Free Cash Flow | $420 million - $520 million | - The guidance assumes global industry production will be **2%** lower than in 2024 on a Lear sales-weighted basis[12](index=12&type=chunk) - The outlook assumes the continuation of agreements to recover costs associated with new tariffs through the second half of the year[13](index=13&type=chunk) [Financial Statements and Supplemental Data](index=7&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) This section presents detailed unaudited financial statements for Q2 and YTD 2025, including income statements, balance sheets, and supplemental data with GAAP to non-GAAP reconciliations [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q2 2025, net sales were **$6.03 billion** with net income of **$165.2 million**, while six-month net sales reached **$11.59 billion** with **$245.9 million** in net income Income Statement Summary (Three Months Ended) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $6,030.4 million | $6,012.4 million | | Net Income Attributable to Lear | $165.2 million | $173.1 million | | Diluted EPS | $3.06 | $3.02 | Income Statement Summary (Six Months Ended) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net Sales | $11,590.7 million | $12,007.0 million | | Net Income Attributable to Lear | $245.9 million | $282.7 million | | Diluted EPS | $4.54 | $4.92 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets were **$15.32 billion**, with cash at **$887.9 million**, total debt around **$2.79 billion**, and total equity at **$5.21 billion** Balance Sheet Summary (as of June 28, 2025) | Account | June 28, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $887.9 million | $1,052.9 million | | Total Assets | $15.32 billion | $14.03 billion | | Long-term debt | $2.76 billion | $2.73 billion | | Total Equity | $5.21 billion | $4.60 billion | [Consolidated Supplemental Data](index=10&type=section&id=Consolidated%20Supplemental%20Data) Q2 2025 supplemental data highlights North America as the largest sales region at **$2.52 billion**, with free cash flow of **$170.8 million**, and reconciliations for non-GAAP metrics Net Sales by Region (Q2) | Region | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | North America | $2,519.3 million | $2,552.5 million | | Europe and Africa | $2,163.2 million | $2,171.6 million | | Asia | $1,144.6 million | $1,074.4 million | | South America | $203.3 million | $213.9 million | Free Cash Flow Reconciliation (Q2) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $296.2 million | $291.2 million | | Capital expenditures | ($125.4 million) | ($120.8 million) | | Free cash flow | $170.8 million | $170.4 million | Adjusted Earnings Per Share Reconciliation (Q2) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Diluted net income per share | $3.06 | $3.02 | | Adjusted earnings per share | $3.47 | $3.60 | [Other Information](index=4&type=section&id=Other%20Information) [Conference Call and Webcast Information](index=4&type=section&id=Conference%20Call%20and%20Webcast%20Information) Lear will host a conference call and webcast on **July 25, 2025**, at **9:00 a.m. EDT**, to discuss its second quarter 2025 financial results - A conference call and webcast to discuss Q2 2025 results is scheduled for **July 25, 2025**, at **9:00 a.m. EDT**[16](index=16&type=chunk) [Non-GAAP Financial Information](index=4&type=section&id=Non-GAAP%20Financial%20Information) This section defines non-GAAP financial measures like core operating earnings and free cash flow, which management uses to analyze core operating performance - The company uses non-GAAP measures like core operating earnings, adjusted EBITDA, and free cash flow to provide a clearer view of its core operational performance[17](index=17&type=chunk)[18](index=18&type=chunk) - Management states that these non-GAAP measures should not be considered in isolation and may not be comparable to similar measures reported by other companies[19](index=19&type=chunk)[20](index=20&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding anticipated financial results, subject to various risks and factors, with sales backlog based on assumptions, not firm orders - The report includes forward-looking statements concerning financial results, which are subject to risks and uncertainties detailed in SEC filings[21](index=21&type=chunk) - The company's core sales backlog reflects anticipated net sales from new programs but is not a guarantee of future revenue, as contracts can be terminated and are subject to various assumptions[22](index=22&type=chunk)

Core Insights - Lear Corporation reported strong operating performance in Q2 2025, with solid margins across both business segments, driven by investments in automation and restructuring [3][4][5] - The company restored its full-year financial guidance, expecting revenue between $22.47 billion and $23.07 billion, and core operating earnings between $955 million and $1.095 billion [11][14] Financial Performance - Q2 2025 sales were $6.03 billion, slightly up from $6.01 billion in Q2 2024, while net income decreased to $165.2 million from $173.1 million year-over-year [4][5][26] - Adjusted net income for Q2 2025 was $187.8 million, down from $205.8 million in Q2 2024, with adjusted earnings per share at $3.47 compared to $3.60 [5][29] - Core operating earnings were $291.8 million, or 4.8% of sales, compared to $302 million, or 5.0% of sales in the previous year [6][29] Segment Performance - In the Seating segment, margins were 6.4% of sales, while adjusted margins were 6.7% [7][33] - The E-Systems segment reported margins of 3.5% and adjusted margins of 4.9% [7][33] Cash Flow and Liquidity - Net cash provided by operating activities was $296 million, with free cash flow at $171 million, compared to $291 million and $170 million, respectively, in Q2 2024 [5][7] - At the end of Q2 2025, cash and cash equivalents totaled $888 million, with total liquidity of $2.9 billion [5][7] Shareholder Returns - The company repurchased $25 million worth of shares during Q2 2025 and paid $41 million in dividends [5][9] - Since the initiation of the share repurchase program in 2011, Lear has repurchased 59.6 million shares for a total of $5.6 billion [10] Market Outlook - Global vehicle production increased by 3% year-over-year, with North America down 3%, Europe down 2%, and China up 9% [4][5] - Lear's financial outlook assumes a 2% decrease in global industry production compared to 2024 on a sales-weighted basis [11][14]

Core Viewpoint - Lear (LEA) is expected to report quarterly earnings of $3.23 per share, reflecting a decline of 10.3% year-over-year, with revenues forecasted at $5.89 billion, a decrease of 2% compared to the previous year [1] Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions to the stock, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [2] Analysts' Consensus on Key Metrics - Analysts forecast 'Net Sales- E-Systems' to be $1.52 billion, indicating a year-over-year decline of 2.9% [4] - 'Net Sales- Seating' is projected to reach $4.37 billion, reflecting a decrease of 1.7% from the same quarter last year [4] - 'Geographic Net Sales- South America' is expected to be $235.04 million, showing an increase of 9.9% year-over-year [4] - 'Geographic Net Sales- North America' is estimated at $2.44 billion, indicating a decline of 4.6% [5] - 'Geographic Net Sales- Europe and Africa' is projected to be $2.13 billion, reflecting a decrease of 1.8% [5] - 'Geographic Net Sales- Asia' is expected to reach $1.13 billion, indicating an increase of 5.4% from the prior year [5] Adjusted Segment Earnings - 'Adjusted Segment Earnings- E-Systems' is estimated at $66.73 million, down from $82.20 million in the same quarter last year [6] - 'Adjusted Segment Earnings- Seating' is projected to be $276.06 million, compared to $302.10 million in the previous year [6] Stock Performance - Shares of Lear have increased by 14.4% over the past month, outperforming the Zacks S&P 500 composite, which rose by 5.9% [6]

Core Insights - Lear (LEA) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 15.85% [1][5] - The most recent earnings report showed a surprise of 18.18%, with actual earnings of $2.64 per share compared to an expected $3.12 per share [2] - The previous quarter also saw a positive surprise of 13.51%, with actual earnings of $2.94 per share against an estimate of $2.59 per share [2] Earnings Estimates and Predictions - Estimates for Lear have been trending higher, supported by its history of earnings surprises [5] - The stock has a positive Zacks Earnings ESP of +5.50%, indicating bullish sentiment among analysts regarding its earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [8] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - The next earnings report for Lear is expected to be released on July 25, 2025 [8]