SOUTHFIELD, MI - Lear Corp. (NYSE: NYSE:LEA) reported a mixed financial outcome for the second quarter, surpassing Wall Street's earnings expectations but falling short on revenue forecasts.
The automotive technology leader announced an adjusted EPS of $3.60, which was $0.19 higher than the analyst estimate of $3.41. However, the company's revenue for the quarter was $6.01 billion, slightly below the consensus estimate of $6.06 billion.
The company's second-quarter revenue marked a modest increase from the $6.0 billion reported in the same period last year, with notable growth in E-Systems and Seating segments.
Lear's net income for the quarter stood at $173 million, while adjusted net income reached $206 million, showing improvements from the previous year's figures of $169 million and $198 million, respectively. The adjusted EPS increase of 8% YoY underscores the company's profitability resilience.
For the full year 2024, Lear anticipates revenue to be between $23.23 billion and $23.67 billion, which is below the analyst consensus of $23.95 billion.
Lear's President and CEO, Ray Scott, highlighted the company's record sales and continuous margin improvement in E-Systems. Scott expressed confidence in Lear's strategic initiatives, including the launch of new thermal comfort technologies and the acquisition of WIP Industrial Automation, aimed at bolstering automation and AI capabilities.
These efforts, according to Scott, are expected to drive future earnings growth and robust cash flow, ultimately benefiting shareholders.
In the second quarter, Lear also continued to execute its capital return strategy, repurchasing $60 million of its shares and paying out $44 million in dividends. The company ended the quarter with a strong cash position, having $950 million in cash and cash equivalents and a total liquidity of $3.0 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.