Analyst Note| Richard Hilgert |
Narrow-moat rated Lear, supplier of seats and electronic/electrical systems to the global auto industry, reported first-quarter earnings per share before special items (EPS) of $3.73, handily beating the $2.95 FactSet consensus EPS estimate by $0.78 and bolting $1.68 from $2.05 EPS reported a year ago. Revenue year-over-year growth was strong, rising 20.1% to $5.4 billion from $4.8 billion reported last year. However, favorable currency resulted in organic growth of 16.0%, representing a 9-percentage-point outperformance versus global light vehicle production adjusted to Lear’s customer base. E-Systems group revenue had 10 percentage points outperformance over market while Seating was 9 percentage points.