Analyst Note| Richard Hilgert |
Narrow-moat rated Lear, supplier of seats and electronic/electrical systems to the global auto industry, reported fourth-quarter earnings per share before special items (EPS) of $3.66, handily beating the $3.47 FactSet consensus EPS estimate by $0.19 and bolting $1.02 from $2.64 EPS reported a year ago. Revenue year-over-year growth was solid, rising 9% to $5.2 billion from $4.8 billion reported last year. E-Systems group sales had 11 percentage points outperformance over the market while Seating was 7 percentage points. Excluding positive currency effect, organic revenue increased 8%, representing a 6-percentage-point outperformance versus global light vehicle production.