Analyst Note| Richard Hilgert |
Narrow-moat Lear reported second-quarter earnings per share before special items of $2.45, missing the $2.69 FactSet consensus estimate by $0.24, but $6.59 higher than the coronavirus-hammered $4.14 loss reported a year ago. Sequentially from the first quarter, EPS was lower by $1.26. Revenue surged 95% year over year to $4.8 billion from $2.4 billion, but declined by 11% reported from the first quarter as customer production was sporadic due to the chip shortage. However, year over year organic growth was 83.0%, representing an 11-percentage point outperformance versus production adjusted to Lear’s customer base.