Lear Q3 revenue rises 2% but slightly misses estimates, adjusted net income beats
Overview
US auto parts supplier's Q3 revenue rose 2% but slightly missed analyst expectations
Adjusted net income beat analyst expectations, rising 23% yr/yr
Company repurchased $175 mln in shares, completing its full-year buyback target
Outlook
Lear sees 2026 net sales between $23.35 bln and $23.75 bln
Company expects 2026 core operating earnings of $1.08 bln to $1.2 bln
Lear maintains full-year core operating earnings outlook despite lower revenue and higher input costs
Result Drivers
NEW BUSINESS AWARDS - Co said revenue growth was driven by new business wins in both Seating and E-Systems segments, including major complete seat awards and electronics contracts
COMMERCIAL RECOVERIES AND RESTRUCTURING - Core operating earnings benefited from commercial recoveries and restructuring actions, according to management
LOWER INDUSTRY PRODUCTION - Co said global vehicle production was down 2% yr/yr, which partially offset revenue gains from new business
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Miss* | $5.77 bln | $5.81 bln (11 Analysts) |
Q3 EPS | $2.74 | ||
Q3 Adjusted Net Income | Beat | $185 mln | $168.32 mln (9 Analysts) |
Q3 Net Income Attributable | $136.6 mln | ||
Q3 Core Operating Earnings | $256 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "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 Corporation is $145.00, about 23.5% above its October 29 closing price of $117.38
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
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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.)