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Why Lear (LEA) International Revenue Trends Deserve Your Attention
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Have you looked into how Lear (LEA - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this automotive seating and electrical distribution systems company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While analyzing LEA's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter stood at $6.01 billion, increasing 0.2% year over year. Now, let's delve into LEA's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Unveiling Trends in LEA's International Revenues
During the quarter, South America contributed $213.9 million in revenue, making up 3.6% of the total revenue. When compared to the consensus estimate of $221.51 million, this meant a surprise of -3.44%. Looking back, South America contributed $205.2 million, or 3.4%, in the previous quarter, and $227.8 million, or 3.8%, in the same quarter of the previous year.
Europe and Africa accounted for 36.1% of the company's total revenue during the quarter, translating to $2.17 billion. Revenues from this region represented a surprise of +1.82%, with Wall Street analysts collectively expecting $2.13 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe and Africa contributed $2.25 billion (37.6%) and $2.19 billion (36.6%) to the total revenue, respectively.
Asia generated $1.07 billion in revenues for the company in the last quarter, constituting 17.9% of the total. This represented a surprise of -6.2% compared to the $1.15 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $1.06 billion (17.7%), and in the year-ago quarter, it contributed $1.11 billion (18.5%) to the total revenue.
Revenue Projections for Overseas Markets
Wall Street analysts expect Lear to report $5.71 billion in total revenue for the current fiscal quarter, indicating a decline of 1.2% from the year-ago quarter. South America, Europe and Africa and Asia are expected to contribute 4.3% ($243.84 million), 34.8% ($1.98 billion) and 20.2% ($1.15 billion) to the total revenue, respectively.
Analysts expect the company to report a total annual revenue of $23.53 billion for the full year, marking an increase of 0.3% compared to last year. The expected revenue contributions from South America, Europe and Africa and Asia are projected to be 3.9% ($908.56 million), 36% ($8.47 billion) and 19.4% ($4.56 billion) of the total revenue, in that order.
In Conclusion
Lear's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Over the past month, the stock has seen an increase of 5.7% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.4%. The Zacks Auto-Tires-Trucks sector, Lear's industry group, has ascended 3.1% over the identical span. In the past three months, there's been a decline of 5.4% in the company's stock price, against a rise of 8.3% in the S&P 500 index. The broader sector has increased by 2.7% during this interval.
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Why Lear (LEA) International Revenue Trends Deserve Your Attention
Have you looked into how Lear (LEA - Free Report) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this automotive seating and electrical distribution systems company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
While analyzing LEA's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
The company's total revenue for the quarter stood at $6.01 billion, increasing 0.2% year over year. Now, let's delve into LEA's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
Unveiling Trends in LEA's International Revenues
During the quarter, South America contributed $213.9 million in revenue, making up 3.6% of the total revenue. When compared to the consensus estimate of $221.51 million, this meant a surprise of -3.44%. Looking back, South America contributed $205.2 million, or 3.4%, in the previous quarter, and $227.8 million, or 3.8%, in the same quarter of the previous year.
Europe and Africa accounted for 36.1% of the company's total revenue during the quarter, translating to $2.17 billion. Revenues from this region represented a surprise of +1.82%, with Wall Street analysts collectively expecting $2.13 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe and Africa contributed $2.25 billion (37.6%) and $2.19 billion (36.6%) to the total revenue, respectively.
Asia generated $1.07 billion in revenues for the company in the last quarter, constituting 17.9% of the total. This represented a surprise of -6.2% compared to the $1.15 billion projected by Wall Street analysts. Comparatively, in the previous quarter, Asia accounted for $1.06 billion (17.7%), and in the year-ago quarter, it contributed $1.11 billion (18.5%) to the total revenue.
Revenue Projections for Overseas Markets
Wall Street analysts expect Lear to report $5.71 billion in total revenue for the current fiscal quarter, indicating a decline of 1.2% from the year-ago quarter. South America, Europe and Africa and Asia are expected to contribute 4.3% ($243.84 million), 34.8% ($1.98 billion) and 20.2% ($1.15 billion) to the total revenue, respectively.Analysts expect the company to report a total annual revenue of $23.53 billion for the full year, marking an increase of 0.3% compared to last year. The expected revenue contributions from South America, Europe and Africa and Asia are projected to be 3.9% ($908.56 million), 36% ($8.47 billion) and 19.4% ($4.56 billion) of the total revenue, in that order.
In Conclusion
Lear's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Lear currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Exploring Recent Trends in Lear's Stock Price
Over the past month, the stock has seen an increase of 5.7% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.4%. The Zacks Auto-Tires-Trucks sector, Lear's industry group, has ascended 3.1% over the identical span. In the past three months, there's been a decline of 5.4% in the company's stock price, against a rise of 8.3% in the S&P 500 index. The broader sector has increased by 2.7% during this interval.