Lear (NYSE:LEA) Posts Earnings Results, Beats Expectations By $0.24 EPS

Key Points

• Lear Corporation (NYSE: LEA) reported **$3.47** earnings per share (EPS) for the quarter, surpassing analysts' expectations of **$3.23** EPS by **$0.24**, with revenue hitting **$6.03 billion**, also above the forecasted **$5.89 billion**.
• After the earnings announcement, Lear's stock declined by **8.1%**, trading at **$99.37**, despite its **52-week high** of **$125.09**.
• The company's quarterly dividend of **$0.77 per share** provides an annualized yield of **3.10%**, with a payout ratio currently at **36.11%**.

Lear (NYSE:LEA - Get Free Report) issued its earnings results on Friday. The auto parts company reported $3.47 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.23 by $0.24, Zacks reports. The firm had revenue of $6.03 billion during the quarter, compared to analyst estimates of $5.89 billion. Lear had a net margin of 2.09% and a return on equity of 14.53%. The business's revenue was up .3% on a year-over-year basis. During the same period in the previous year, the firm earned $3.60 earnings per share. Lear updated its FY 2025 guidance to EPS.

Lear Stock Down 8.1%

LEA stock traded down $8.77 during trading on Friday, hitting $99.37. 1,670,335 shares of the company's stock were exchanged, compared to its average volume of 648,202. The business has a 50-day moving average price of $96.63 and a two-hundred day moving average price of $92.90. The stock has a market capitalization of $5.31 billion, a price-to-earnings ratio of 11.65, a PEG ratio of 0.56 and a beta of 1.29. Lear has a 52-week low of $73.85 and a 52-week high of $125.09. The company has a current ratio of 1.32, a quick ratio of 1.03 and a debt-to-equity ratio of 0.57.

Lear Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 25th. Stockholders of record on Thursday, June 5th were given a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a dividend yield of 3.10%. The ex-dividend date was Thursday, June 5th. Lear's dividend payout ratio is presently 36.11%.

Insiders Place Their Bets

In related news, Director Conrad L. Mallett, Jr. sold 1,187 shares of the business's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $92.86, for a total transaction of $110,224.82. Following the completion of the sale, the director owned 84 shares in the company, valued at $7,800.24. The trade was a 93.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.91% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lear

Several large investors have recently modified their holdings of LEA. Empowered Funds LLC purchased a new stake in shares of Lear during the first quarter worth approximately $256,000. United Services Automobile Association purchased a new position in Lear in the first quarter worth $267,000. Finally, Jones Financial Companies Lllp raised its position in Lear by 5,205.1% in the first quarter. Jones Financial Companies Lllp now owns 7,268 shares of the auto parts company's stock worth $604,000 after acquiring an additional 7,131 shares in the last quarter. Hedge funds and other institutional investors own 97.04% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on LEA shares. UBS Group reaffirmed a "neutral" rating and issued a $116.00 price objective (up from $95.00) on shares of Lear in a research note on Monday, July 14th. Citigroup upped their price objective on shares of Lear from $123.00 to $136.00 and gave the stock a "buy" rating in a research note on Monday, June 30th. Morgan Stanley lowered their price objective on shares of Lear from $125.00 to $115.00 and set an "overweight" rating for the company in a research note on Monday, May 19th. Bank of America upped their price objective on shares of Lear from $110.00 to $115.00 and gave the stock a "buy" rating in a research note on Monday, June 16th. Finally, Wells Fargo & Company increased their price target on shares of Lear from $100.00 to $103.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. Nine equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $113.64.

Lear Company Profile

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles.

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