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Lear Takes Action as Virus Scare Rises: What You Should Know
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The number of confirmed COVID-19 cases has crossed 500,000 worldwide, claiming more than 22,000 lives. The novel coronavirus outbreak has not only claimed human lives but is also wreaking havoc on the global economy. Companies across the globe are facing unprecedented challenges and taking stringent measures to tackle the crisis. Suspension of production, forced leaves/layoffs and cost cutting are becoming increasingly commonplace.With closure of factories, lower footfall at dealerships and disruptions in global supply chains, the auto industry is in disarray. Citing the uncertainty amid the coronavirus pandemic, many automakers are scrapping 2020 outlook.
On Mar 26, Lear Corporation (LEA - Free Report) provided business updates in response to the virus outbreak. The auto parts supplier is undertaking various initiatives to ensure the safety of employees. Lear is implementing stringent cleaning regimens, imposing restrictions on access to the plants and taking other steps to keep workplaces safe for employees. Other measures to contain the spread of the virus include allowing some employees to work from home and controlling numbers at the company cafeterias.
As coronavirus concerns have dimmed earnings and sales prospects, Lear is resorting to temporary cost-reduction measures to preserve financial flexibility. The firm has suspended quarterly dividend and stock buybacks in an attempt to shore up the balance sheet, as it braces for a period of revenue slump amid the virus mayhem. Further, the company is drawing $1 billion from the $1.75-billion revolving credit facility. Shares of this Zacks Rank #3 (Hold) firm have tanked more than 30% on a year-to-date basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Additionally, Lear is pulling its fiscal 2020 outlook amid the virus-induced uncertainty. Other auto parts suppliers that withdrew their ’20 guidance this week include Meritor, Inc. , Magna International Inc. (MGA - Free Report) and American Axle (AXL - Free Report) .
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Lear Takes Action as Virus Scare Rises: What You Should Know
The number of confirmed COVID-19 cases has crossed 500,000 worldwide, claiming more than 22,000 lives. The novel coronavirus outbreak has not only claimed human lives but is also wreaking havoc on the global economy. Companies across the globe are facing unprecedented challenges and taking stringent measures to tackle the crisis. Suspension of production, forced leaves/layoffs and cost cutting are becoming increasingly commonplace.With closure of factories, lower footfall at dealerships and disruptions in global supply chains, the auto industry is in disarray. Citing the uncertainty amid the coronavirus pandemic, many automakers are scrapping 2020 outlook.
On Mar 26, Lear Corporation (LEA - Free Report) provided business updates in response to the virus outbreak. The auto parts supplier is undertaking various initiatives to ensure the safety of employees. Lear is implementing stringent cleaning regimens, imposing restrictions on access to the plants and taking other steps to keep workplaces safe for employees. Other measures to contain the spread of the virus include allowing some employees to work from home and controlling numbers at the company cafeterias.
As coronavirus concerns have dimmed earnings and sales prospects, Lear is resorting to temporary cost-reduction measures to preserve financial flexibility. The firm has suspended quarterly dividend and stock buybacks in an attempt to shore up the balance sheet, as it braces for a period of revenue slump amid the virus mayhem. Further, the company is drawing $1 billion from the $1.75-billion revolving credit facility. Shares of this Zacks Rank #3 (Hold) firm have tanked more than 30% on a year-to-date basis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Additionally, Lear is pulling its fiscal 2020 outlook amid the virus-induced uncertainty. Other auto parts suppliers that withdrew their ’20 guidance this week include Meritor, Inc. , Magna International Inc. (MGA - Free Report) and American Axle (AXL - Free Report) .
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>