Headwinds Persist in Lear Q2 Results as 2022 Guidance Range Tightens

Narrow-moat rated Lear reported second quarter earnings per share before special items of $1.79, beating the $1.45 FactSet consensus estimate by $0.34 but dropping $0.66 from $2.45 EPS reported a year ago. Results were hit by sporadic customer production from China COVID-19 lockdowns, the chip crunch, the Ukraine crisis, supply chain disruption, higher raw material cost, and increased logistic expense. Revenue increased 7% to $5.1 billion from $4.8 billion last year, better than consensus by 1%. Excluding currency and acquisitions, organic revenue rose 11%, 10 percentage points above the 1% increase in global light vehicle production adjusted to Lear’s customer base.