Lear Corp beats Q2 revenue, adjusted EPS estimates, raises FY outlook
Lear Corp beats Q2 revenue, adjusted EPS estimates, raises FY outlook
Overview
U.S. auto seating and E-Systems supplier's Q2 revenue rose 3%, beating analyst expectations
Adjusted EPS for Q2 rose 23% year-over-year and beat analyst expectations
Company repurchased $100 mln of shares and raised full-year guidance
Outlook
Lear raises 2026 net sales outlook to $23.54 bln-$24.01 bln
Company expects 2026 core operating earnings of $1.08 bln-$1.2 bln
Lear anticipates 2026 free cash flow of $590 mln-$690 mln
Result Drivers
NEW BUSINESS AWARDS - Co said Q2 revenue growth was driven by significant new and conquest awards in Seating and E-Systems segments
COMMERCIAL RECOVERIES - Co attributed part of Q2 sales increase to commercial recoveries
SHARE REPURCHASES - EPS growth benefited from share repurchase program
Company press release: ID:nPn2Lw9L5a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $6.21 bln | $6.10 bln (12 Analysts) |
Q2 Adjusted EPS | Beat | $4.28 | $3.96 (13 Analysts) |
Q2 EPS |
| $3.79 |
|
Q2 Adjusted Net Income | Beat | $217.40 mln | $198.83 mln (9 Analysts) |
Q2 Net Income |
| $192.80 mln |
|
Q2 Core Operating Earnings |
| $313.20 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Lear Corp is $147.50, about 0.8% below its July 30 closing price of $146.33
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)