Lear Corporation Q4 2017 Earnings Preview
Lear Corporation (NYSE:LEA) will announce its Q4 2017 results on Friday January 26th 2018 and the company is likely to report a strong quarter. It updated its revenue and income outlook for 2017 and 2018 while announcing its Q3 2017 results. Consensus estimates put Lear’s revenue and EPS (earnings per share) year on year growth at nearly 13%.
The charts below summarize Lear’s performance in the last two quarters and expectations for Q4 2017:
You can click here to access these charts and modify the growth numbers on the second chart.
At the recent Deutsche Bank Investor Conference, Lear Corporation indicated that it expects around $20 billion in revenues and $1.7 billion in core operating earnings for the fiscal year 2017. This is broadly in line with our estimates for this fiscal year.
Lear’s industry leading capabilities and cost structure put the company in a significant competitive advantage, driving growth. The company has managed to increase its market share in the seating segment from 19% in 2012 to 23% in 2017. In the E-services segment the increase has been from 7% to 9%. Lear Corporation is expecting this share to increase further in the coming years and to grow its revenues with the growing market size.
The shift of the passenger vehicles market towards larger vehicles such as CrossOvers and SUVs is working in Lear Corporation’s favor and the higher content spend on these vehicles will drive revenues for Lear. (Read How Growing Demand For SUVs and Cross-overs Can Aid Lear Corporation’s Business).
Lear is expected to post strong results for Q4 2017 and the fiscal year 2017. We will be keenly watching the company’s guidance for 2018 and the coming years in terms of expected market share and cost savings.
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