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Lear Corporation’s (LEA - Free Report) third-quarter 2020 adjusted earnings came in at $3.73 per share, surpassing the Zacks Consensus Estimate of $3.22. Higher-than-expected revenues from both the company’s segments led to the outperformance. It recorded earnings of $3.56 per share in third-quarter 2019. For the reported quarter, revenues increased 1.5% year over year to $4,900 million. The top line also beat the Zacks Consensus Estimate of $4,722 million.
Lear Corporation Price, Consensus and EPS Surprise
Sales in the Seating segment totaled $3,691.6 million for third-quarter 2020, reflecting a decline from the year-ago quarter’s $3,715 million. However, the metric surpassed the Zacks Consensus Estimate of $3,517 million. Adjusted segmental earnings came in at $286.3 million, lower than $303.5 million recorded in the third quarter of 2019. The segment recorded adjusted margins of 7.8% of sales.
Sales in the E-Systems segment summed $1208.5 million, up 8.8% year over year. The figure also topped the consensus mark of $1,082 million. Adjusted segmental earnings amounted to $93.1 million, higher than $84.7 million recorded in the year-ago quarter. For the E-Systems segment, adjusted margin was 7.7% of sales.
Financial Position
The company had $1,250.4 million of cash and cash equivalents as of Oct 3, 2020 compared with $1,487.7 million recorded on Dec 31, 2019. It had a long-term debt of $2.299.8 million as of Oct 3, 2020 compared with $2,293.7 million recorded on Dec 31, 2019.
At third quarter-end, cash provided by operating activities totaled $565 million, up 64.7% year over year. For the reported period, its capital expenditure amounted to $90.1 million, down from $150.8 million witnessed in the prior-year quarter. Free cash flow (FCF) came in at $474 million, higher than $192.6 million generated in the corresponding period of 2019.
2020 Guidance
Lear provided a full-year 2020 view that does not take into account any major coronavirus-led disruption and shutdown in the ongoing quarter. Full-year net sales are expected between $16.35 billion and $16.65 billion. Core operating earnings are forecast in the band of $520-$580 million. Capital spending is anticipated to be $425 million. FCF is envisioned in the range of $125-$175 million.
The Zacks Consensus Estimate for Visteon’s 2021 earnings and sales points to year-over-year growth of 120.2% and 20.4%, respectively.
The Zacks Consensus Estimate for Autoliv’s 2021 earnings and sales points to year-over-year growth of 554.9% and 23%, respectively.
The Zacks Consensus Estimate for Navistar’s fiscal 2021 earnings and sales points to year-over-year growth of 265.8% and 18%, respectively.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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Lear (LEA) Q3 Earnings & Sales Top Estimates, FCF Jumps Y/Y
Lear Corporation’s (LEA - Free Report) third-quarter 2020 adjusted earnings came in at $3.73 per share, surpassing the Zacks Consensus Estimate of $3.22. Higher-than-expected revenues from both the company’s segments led to the outperformance. It recorded earnings of $3.56 per share in third-quarter 2019. For the reported quarter, revenues increased 1.5% year over year to $4,900 million. The top line also beat the Zacks Consensus Estimate of $4,722 million.
Lear Corporation Price, Consensus and EPS Surprise
Lear Corporation price-consensus-eps-surprise-chart | Lear Corporation Quote
Segment Performances
Sales in the Seating segment totaled $3,691.6 million for third-quarter 2020, reflecting a decline from the year-ago quarter’s $3,715 million. However, the metric surpassed the Zacks Consensus Estimate of $3,517 million. Adjusted segmental earnings came in at $286.3 million, lower than $303.5 million recorded in the third quarter of 2019. The segment recorded adjusted margins of 7.8% of sales.
Sales in the E-Systems segment summed $1208.5 million, up 8.8% year over year. The figure also topped the consensus mark of $1,082 million. Adjusted segmental earnings amounted to $93.1 million, higher than $84.7 million recorded in the year-ago quarter. For the E-Systems segment, adjusted margin was 7.7% of sales.
Financial Position
The company had $1,250.4 million of cash and cash equivalents as of Oct 3, 2020 compared with $1,487.7 million recorded on Dec 31, 2019. It had a long-term debt of $2.299.8 million as of Oct 3, 2020 compared with $2,293.7 million recorded on Dec 31, 2019.
At third quarter-end, cash provided by operating activities totaled $565 million, up 64.7% year over year. For the reported period, its capital expenditure amounted to $90.1 million, down from $150.8 million witnessed in the prior-year quarter. Free cash flow (FCF) came in at $474 million, higher than $192.6 million generated in the corresponding period of 2019.
2020 Guidance
Lear provided a full-year 2020 view that does not take into account any major coronavirus-led disruption and shutdown in the ongoing quarter. Full-year net sales are expected between $16.35 billion and $16.65 billion. Core operating earnings are forecast in the band of $520-$580 million. Capital spending is anticipated to be $425 million. FCF is envisioned in the range of $125-$175 million.
Zacks Rank & Other Stocks to Consider
Lear currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the industry include Autoliv Inc. (ALV - Free Report) , Visteon Corporation (VC - Free Report) and Navistar International Corporation , each carrying a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Visteon’s 2021 earnings and sales points to year-over-year growth of 120.2% and 20.4%, respectively.
The Zacks Consensus Estimate for Autoliv’s 2021 earnings and sales points to year-over-year growth of 554.9% and 23%, respectively.
The Zacks Consensus Estimate for Navistar’s fiscal 2021 earnings and sales points to year-over-year growth of 265.8% and 18%, respectively.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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