What To Expect From Lear Corporation’s Full Year Results?
Lear Corporation (NYSE: LEA) will release its 2018 fourth quarter and full year financial results on January 25, 2018. The conference call to discuss the results will be at 8:00am E.T. The market expects the company to report EPS of approximately $18.13, 6.6% higher than last year. While the revenue estimation is approximately $21.19 billion, 3.5% higher than last year. These expectations are also in line with the company’s revised outlook in the quarter 3 results. In the Q3 results the company had missed the consensus expectations which was attributed to challenging macro-economic conditions, particularly in China and Europe, as well as due to foreign exchange volatility. The company also experienced lower margins which were due to program changeovers and rising commodity costs.
We have a $169 price estimate for the company, which is above the current market price. View our interactive dashboard – Our Outlook For Lear Corporation In 2018 – and modify the key assumptions to arrive at your own price estimate for the company.
The company in the E-Systems segment recorded a sales growth of 9% year on year (YOY) even though there was a strong backlog in China and lower production on key Lear platforms. The overall margin in E-Systems declined by about 230 basis points YOY on the back of volume reductions on mature Lear platforms and a profitable backlog. Lower production on key Lear platforms also affected the Seating segment in both Sales, where it recorded a decline of 5% YOY, meanwhile the margins were slightly improved (50 basis point YOY) on the back of the launch of profitable backlog programs and the benefit of the roll off of lower margin programs in North America.
Lear had a mixed 2018 where it had to downward revise its estimates in Q3, but fundamentally the company is well positioned in the market place. An Industry leading talent, deep experience, and a track record of operational excellence keeps them going. The company also has a good number of products lined up for both the seating segment and E-systems.
What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
Like our charts? Explore example interactive dashboards and create your own.