Lear Corporation reports results for the quarter ended September 30 - Earnings Summary

What happened

Lear Corporation reported adjusted earnings of $3.71 per share for the quarter ended September 30, above the $3.37 per share expected by fourteen analysts. Revenue rose 1.6% to $5.77 billion, while net income was $136.6 million.

Confirmed

Global impact / market context

Profit per share beat expectations while revenue fell just short, which means the company kept more of each sales dollar. Analysts have trimmed earnings estimates recently, and the average rating is hold, so the beat may not fully change a cautious view.

Analyst inference

Lear shares had fallen 0.6% this quarter and gained 2.4% this year. The average rating is hold with six buy ratings and eleven hold ratings, while the median target of $145 sits above the last close of $117.38.

Analyst inference

What to watch

1. Watch whether Lear's revenue growth of 1.6% to $5.77 billion speeds up next quarter, since it missed the $5.80 billion analysts expected. Confirmed
2. Analysts could raise earnings estimates after the $3.71 per share beat, which would mean the profit outlook is improving after recent cuts. Proposed
3. Watch whether the gap between the $117.38 closing price and the $145 median target narrows, which would signal investors gaining confidence in the profit beat. Analyst inference

Evidence

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