SOUTHFIELD, MI - Lear Corporation (NYSE: NYSE:LEA), a leading global supplier for automotive seating and electrical systems, reported a robust start to 2024 with record first-quarter revenue and a notable increase in adjusted earnings per share (EPS).
The company's financial performance for the quarter surpassed analyst expectations for EPS, although revenue was slightly below the consensus estimate.
For the first quarter of 2024, Lear announced revenue of $6.0 billion, a 3% increase from the $5.8 billion reported in the same period last year. This growth was attributed to a 10 percentage point outperformance in the E-Systems segment over the market.
The company's adjusted EPS for the quarter was $3.18, exceeding the analyst estimate of $3.03 and marking a 14% increase from the $2.78 reported in the first quarter of 2023.
Lear's President and CEO, Ray Scott, highlighted the company's strong start to the year, stating, "Lear started 2024 strong, delivering record first quarter total company revenue and improved year-over-year margins in E-Systems for the seventh consecutive quarter."
He also emphasized the progress made in the company's thermal comfort strategy and the diversification of their customer base, which included a second wire award with BMW (ETR:BMWG).
Despite a 1% decrease in global vehicle production compared to the previous year, Lear's sales improved, driven by new business additions in both Seating and E-Systems segments. The company's core operating earnings rose to $280 million, up from $263 million in the prior year, reflecting a margin improvement to 4.7% of sales.
Looking ahead, Lear Corp. provided guidance for FY2024, projecting revenue to be between $24 billion and $24.6 billion. This range places the midpoint slightly below the analyst consensus of $24.43 billion, suggesting cautious optimism for the company's performance in the current fiscal year.
While the company's stock movement following the earnings release was not provided, the financial results and forward-looking statements reflect Lear's continued commitment to growth and operational excellence. With a strong liquidity position, including $930 million in cash and cash equivalents at the end of the quarter, and an increased share repurchase authorization, Lear appears well-positioned to navigate the evolving automotive landscape.
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