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Lear Posts Strong Finish to 2020, Initiates 2021 Guidance; $137 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 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.

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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 Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 174,600