Lear Corporation (NYSE:LEA) Plans Quarterly Dividend of $0.77

Key Points

• Lear declared a quarterly dividend of $0.77 per share, payable September 22 to shareholders of record on September 2. The dividend implies an annualized payout of $3.08 and a 2.5% yield.
• The dividend appears well covered, with a current payout ratio of 22.8% and an expected forward payout ratio of 18.4% based on projected earnings.
• Lear exceeded quarterly expectations, reporting $4.28 in EPS versus the $3.98 consensus and $6.21 billion in revenue. Despite mixed analyst changes, the stock carries a consensus “Hold” rating with a $145.23 price target.

Lear Corporation (NYSE:LEA - Get Free Report) announced a quarterly dividend on Thursday, August 13th. Stockholders of record on Wednesday, September 2nd will be given a dividend of 0.77 per share by the auto parts company on Tuesday, September 22nd. This represents a c) annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Wednesday, September 2nd.

Lear has raised its dividend by an average of 0.2%annually over the last three years. Lear has a dividend payout ratio of 22.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Lear to earn $16.77 per share next year, which means the company should continue to be able to cover its $3.08 annual dividend with an expected future payout ratio of 18.4%.

Lear Stock Up 1.0%

LEA stock opened at $122.48 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.31 and a quick ratio of 1.04. The company's 50 day simple moving average is $136.17 and its 200-day simple moving average is $131.20. Lear has a 12 month low of $96.04 and a 12 month high of $150.33. The firm has a market capitalization of $6.04 billion, a PE ratio of 11.41, a P/E/G ratio of 0.58 and a beta of 1.25.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings data on Friday, July 31st. The auto parts company reported $4.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.98 by $0.30. The firm had revenue of $6.21 billion during the quarter, compared to the consensus estimate of $6.15 billion. Lear had a return on equity of 14.18% and a net margin of 2.35%.The company's quarterly revenue was up 3.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.06 EPS. Equities analysts expect that Lear will post 14.87 earnings per share for the current fiscal year.

Analyst Ratings Changes

LEA has been the topic of a number of analyst reports. Wells Fargo & Company increased their price objective on Lear from $137.00 to $138.00 and gave the company an "equal weight" rating in a research note on Monday, August 3rd. Wall Street Zen lowered shares of Lear from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st. BNP Paribas Exane cut shares of Lear from an "outperform" rating to a "neutral" rating in a research note on Monday, August 3rd. JPMorgan Chase & Co. raised their price target on shares of Lear from $153.00 to $159.00 and gave the stock an "overweight" rating in a research note on Friday, July 10th. Finally, Morgan Stanley set a $130.00 price objective on shares of Lear in a research report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $145.23.

Lear Company Profile

Lear Corporation NYSE: LEA is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.

The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.

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