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 ...

Lear (LEA) came out with quarterly earnings of $2.94 per share, beating the Zacks Consensus Estimate of $2.59 per share. This compares to earnings of $3.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 13.51%. A quarter ago, it was expected that this automotive seating and electrical distribution systems company would post earnings of $2.57 per share when it actually produced earnings of $2.89, delivering a surprise of 12.45 ...

FOR IMMEDIATE RELEASE Lear Contacts: Marianne Vidershain (248) 447-5541 Lear Reports Fourth Quarter and Full Year 2024 Results SOUTHFIELD, Mich., February 6, 2025 -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today reported results for the fourth quarter and full year 2024 and provided its financial outlook for the full year 2025. Fourth Quarter 2024 Highlights Full Year 2024 Highlights (more) • Delivered revenue of $5.7 billion in the fourth quarter, compa ...

SOUTHFIELD, Mich., Feb. 6, 2025 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today reported results for the fourth quarter and full year 2024 and provided its financial outlook for the full year 2025.Fourth Quarter 2024 Highlights Delivered revenue of $5.7 billion in the fourth quarter, compared to $5.8 billion in the fourth quarter of 2023 Net income of $88 million and adjusted net income of $161 million, compared to $127 million and $177 mil ...

SOUTHFIELD, Mich., Feb. 5, 2025 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, announced today a key engineering integration with General Motors, beginning in the second quarter of 2025. A first of its kind, the ComfortMax Seat integrates thermal comfort technologies into trim covers, providing occupant comfort and well-being, superior thermal management and improved manufacturing efficiency. "We are honored to partner with General Motors, a com ...

SOUTHFIELD, Mich., Feb. 4, 2025 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today announced it has purchased StoneShield Engineering, a privately held system integrator based in Castelo Branco, Portugal.Founded in 2017, StoneShield Engineering specializes in the design and development of automation technology for the wire harness industry. Key areas of expertise include robotics, automated taping applications and high voltage harness assembly ...