Lear offers compelling long-term upside, with a 15%+ annualized return potential and strong positioning in automotive seating and e-systems. Despite market volatility and tariff risks, Lear's valuation is highly attractive, trading at under 8x P/E with a well-covered 3.4% yield. Recent contract wins, global expansion, and resilience in a tough auto market reinforce my bullish thesis and $150/share price target.
Lear (LEA) reported earnings 30 days ago. What's next for the stock?
Review Lear's (LEA) international revenue performance and how it affects the predictions of financial analysts on Wall Street and the future prospects for the stock.
LEA is facing headwinds from the uncertain macro environment related to high tariffs.
LEA outpaces estimates as adjusted margins rise y/y. The company fails to reaffirm previous guidance.
Lear Corporation (NYSE:LEA ) Q1 2025 Earnings Conference Call May 6, 2025 9:00 AM ET Company Participants Tim Brumbaugh - VP, IR Ray Scott - President and CEO Jason Cardew - SVP and CFO Conference Call Participants Joe Spak - UBS Dan Levy - Barclays Emmanuel Rosner - Wolfe Research Colin Langan - Wells Fargo John Murphy - Bank of America Itay Michaeli - TD Cowen Operator Good morning everyone and welcome to the Lear Corporation First Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode.
While the top- and bottom-line numbers for Lear (LEA) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Lear (LEA) came out with quarterly earnings of $3.12 per share, beating the Zacks Consensus Estimate of $2.64 per share. This compares to earnings of $3.18 per share a year ago.
Lear (LEA) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Lear (LEA) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Lear Corporation's fundamentals remain strong, but the impact of tariffs and potential production shifts necessitate a lowered price target from $160 to $150/share. Despite decent full-year results and a solid sales backlog, uncertainties around tariffs and production costs present significant risks to short-term performance. Lear's valuation is attractive at below 7x P/E, but the complexities of tariff impacts and production moves make forecasting challenging.
LEA shares have been underperforming amid EV production cuts, delayed program launches and restructuring issues.