Lear Earnings: Improved Results Despite UAW Strike; 2024 Margin Guidance Disappoints

Narrow-moat Lear reported fourth-quarter earnings per share before special items of $3.03, $0.09 shy of the $3.12 FactSet consensus but increasing $0.22 from $2.81 EPS reported a year ago, despite the UAW strike. Results were also negatively affected by supply chain disruptions, inflationary cost pressures, and higher launch costs. Revenue increased 9% to $5.8 billion from $5.3 billion last year, 3% above consensus. Organic revenue rose 5%, 2 percentage points less than a 7% increase in light vehicle production adjusted to Lear's customers, mainly due to the GM truck plant labor stoppage. Revenue growth was supported by new business and inflationary cost recoveries.