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Lear Posts Strong First-Quarter Results and Tweaks 2021 Guidance; $142 FVE Unchanged

Richard Hilgert Senior Equity Analyst

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.

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Company Profile

Business Description

Lear designs, develops, and manufactures automotive seating and electrical systems and components. Seating components include frames and mechanisms, covers (leather and woven fabric), foam, and headrests. Automotive electrical distribution systems and major electrical and electronic components include wiring harnesses, terminals and connectors, junction boxes, electronic control modules, wireless control devices, interior and exterior LED lighting systems, and audio systems and electronics.

21557 Telegraph Road
Southfield, MI, 48033
T +1 248 447-1500
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 174,600