Brokerages forecast that Lear Co. (NYSE:LEA) will report $5.31 billion in sales for the current fiscal quarter, Zacks reports. Six analysts have issued estimates for Lear’s earnings, with the highest sales estimate coming in at $5.69 billion and the lowest estimate coming in at $5.07 billion. Lear reported sales of $5.73 billion in the same quarter last year, which would suggest a negative year over year growth rate of 7.3%. The business is expected to issue its next quarterly earnings report on Thursday, April 25th.
According to Zacks, analysts expect that Lear will report full-year sales of $21.39 billion for the current year, with estimates ranging from $21.24 billion to $21.85 billion. For the next financial year, analysts anticipate that the firm will post sales of $22.48 billion, with estimates ranging from $22.00 billion to $23.40 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side analysts that that provide coverage for Lear.
Lear (NYSE:LEA) last posted its quarterly earnings data on Friday, January 25th. The auto parts company reported $4.05 earnings per share for the quarter, beating analysts’ consensus estimates of $3.96 by $0.09. Lear had a net margin of 5.37% and a return on equity of 27.12%. The firm had revenue of $4.94 billion for the quarter, compared to analyst estimates of $4.99 billion. During the same period last year, the firm posted $4.38 EPS. Lear’s quarterly revenue was down 7.9% on a year-over-year basis.
A number of research firms recently weighed in on LEA. UBS Group upgraded shares of Lear from a “neutral” rating to a “buy” rating in a research report on Friday, January 4th. Buckingham Research upgraded shares of Lear from a “neutral” rating to a “buy” rating in a research report on Monday, January 7th. Morgan Stanley lowered their price objective on shares of Lear from $214.00 to $186.00 and set a “buy” rating on the stock in a research report on Wednesday, November 14th. KeyCorp began coverage on shares of Lear in a research report on Monday, December 10th. They issued an “overweight” rating and a $178.00 price objective on the stock. Finally, Jefferies Financial Group began coverage on shares of Lear in a research report on Tuesday, December 4th. They issued a “buy” rating and a $166.00 price objective on the stock. Five research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus price target of $183.40.
NYSE:LEA traded down $2.71 during midday trading on Thursday, reaching $155.22. The stock had a trading volume of 637,700 shares, compared to its average volume of 803,217. Lear has a 12-month low of $114.45 and a 12-month high of $206.36. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.40 and a quick ratio of 1.13. The firm has a market cap of $9.84 billion, a price-to-earnings ratio of 8.52, a price-to-earnings-growth ratio of 3.48 and a beta of 1.40.
Lear announced that its board has approved a share repurchase plan on Thursday, February 7th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the auto parts company to buy up to 15.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, March 20th. Shareholders of record on Friday, March 1st will be issued a $0.75 dividend. The ex-dividend date is Thursday, February 28th. This represents a $3.00 dividend on an annualized basis and a yield of 1.93%. This is an increase from Lear’s previous quarterly dividend of $0.70. Lear’s dividend payout ratio (DPR) is 15.37%.
In other Lear news, VP Shari L. Burgess sold 3,500 shares of the firm’s stock in a transaction on Tuesday, February 19th. The stock was sold at an average price of $156.00, for a total value of $546,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Terrence B. Larkin sold 18,985 shares of the firm’s stock in a transaction on Wednesday, February 13th. The shares were sold at an average price of $155.28, for a total value of $2,947,990.80. Following the completion of the sale, the executive vice president now directly owns 2,752 shares of the company’s stock, valued at approximately $427,330.56. The disclosure for this sale can be found here. 0.43% of the stock is currently owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in LEA. IMS Capital Management purchased a new stake in Lear during the 3rd quarter worth about $38,000. Massey Quick Simon & CO. LLC purchased a new stake in Lear during the 4th quarter worth about $32,000. Rational Advisors LLC purchased a new stake in Lear during the 4th quarter worth about $49,000. Advisory Services Network LLC increased its position in Lear by 25.1% during the 4th quarter. Advisory Services Network LLC now owns 877 shares of the auto parts company’s stock worth $108,000 after purchasing an additional 176 shares in the last quarter. Finally, Legacy Financial Advisors Inc. increased its position in Lear by 250.2% during the 3rd quarter. Legacy Financial Advisors Inc. now owns 956 shares of the auto parts company’s stock worth $138,000 after purchasing an additional 683 shares in the last quarter. 96.21% of the stock is owned by institutional investors.
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components primarily to automotive original equipment manufacturers worldwide. The company operates through Seating and E-Systems segments. The Seating segment includes seat systems and related components, such as leather and fabric products, seat trim covers, recliner mechanisms, seat tracks, seat structures and mechanisms, seat foams, and headrests primarily for automobiles and light trucks, compact cars, and sport utility vehicles, as well as thermoelectric seat heating and cooling systems.
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