NYSE$LEA

Lear Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Lear's Q3 2023 results were reported, showing increased sales, net income, and earnings per share compared to the same period last year, and the full year 2023 financial outlook was raised.

Lear Corporation reported a 10% increase in sales to $5.8 billion for the third quarter of 2023. Net income rose to $133 million, and earnings per share reached $2.25. The company increased its full year 2023 financial outlook, despite an anticipated $350 million sales impact from industry disruptions related to the ongoing UAW strike.

  • Sales increased by 10% to $5.8 billion compared to Q3 2022.
  • Net income reached $133 million, up from $92 million in the same quarter last year.
  • Earnings per share increased to $2.25, compared to $1.54 in Q3 2022.
  • Free cash flow was $251 million, significantly higher than the $112 million reported in the third quarter of 2022.

Headline financials

Total Revenue

$5.78B

Previous: $5.24B+10.3%
EPS (adj)

$2.87

Previous: $2.33+23.2%
Core Operating Earnings

$267M

No prior period
Capital Expenditures

-$153M

Previous: -$140M-9.1%
Free Cash Flow

-$20.3M

Previous: -$48.1M+57.8%
Net Income

$133M

Previous: $92.3M+44.0%
Operating Income

$220M

Previous: $198M+11.3%
Gross Profit

$418M

Previous: $377M+11.0%
Cash & Equivalents

$980M

Previous: $842M+16.3%
Total Assets

$14.6B

Previous: $13.4B+9.2%

Revenue & EPS history

Lear · Revenue · Quarterly

$5.78B

Q3 2023+10.3%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Lear · $5.78B total across 2 segments · Q3 2023

  • Seating
    $4.28B+10.2%
  • E-Systems
    $1.5B+10.5%

Forward guidance

Lear Corporation updated its full year 2023 financial outlook, increasing it from the midpoint of the prior outlook. This forecast includes an estimated $350 million sales impact from industry disruptions related to the ongoing UAW strike, with approximately $325 million of that impact expected in the fourth quarter.

Tailwinds

  • Net Sales: $23,100 million - $23,300 million
  • Core Operating Earnings: $1,085 million - $1,125 million
  • Adjusted EBITDA: $1,685 million - $1,725 million
  • Operating Cash Flow: $1,230 million - $1,270 million
  • Free Cash Flow: $555 million - $595 million

Headwinds

  • The full year financial outlook assumes a $350 million sales impact from industry disruptions related to the ongoing UAW strike.
  • Restructuring Costs: Approximately $125 million
  • Capital Spending: Approximately $675 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.3%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+0.2%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+11.9%

Q1 2020

Best reaction

-9.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+8.2%+12.5%
Q4 2025+10.7%+16.4%+0.5%
Q3 2025+4.5%+5.4%+3.7%
Q1 2025-2.8%+2.5%-1.2%
Q3 2024-6.0%-5.1%-6.7%
Q2 2024+4.2%+4.0%+0.3%
Q1 2024-9.4%-7.3%-9.8%
Q4 2023-1.5%+0.3%+5.8%
Q3 2023-1.3%+0.1%+3.5%
Q2 2023-1.8%-1.1%-6.9%
Q1 2023-2.5%-4.7%-2.6%
Q4 2022-5.6%-5.3%-4.6%
Q3 2022-7.1%-1.6%+1.5%
Q2 2022+3.2%-5.5%-8.3%
Q1 2022+5.8%+0.9%+8.9%
Q4 2021+1.2%-5.9%-19.0%
Q3 2021+1.8%+1.1%-0.3%
Q2 2021-2.6%+0.1%-5.9%
Q1 2021-0.8%-6.8%+4.8%
Q4 2020-2.8%+1.1%+10.3%
Q3 2020-1.5%-1.1%+17.4%
Q2 2020+3.1%+0.4%+7.2%
Q1 2020+11.9%-0.3%+33.5%
Q4 2019-3.1%-5.4%-15.2%
Q3 2019+1.6%-1.6%-2.0%
Q2 2019-3.3%-5.0%-20.2%
Q1 2019-2.3%-2.8%-14.2%
Q4 2018+5.9%+3.2%+4.4%
Q3 2018-6.0%-4.8%+0.6%
Q2 2018-3.2%-0.8%-9.6%
Q1 2018-0.1%-0.4%+5.4%
Q4 2017+1.8%+0.8%-1.3%
Q3 2017+1.4%-0.9%+1.4%
Q2 2017+3.2%+1.5%-1.0%
Q1 2017+1.2%+1.2%+4.7%
Q4 2016-3.9%-3.3%-3.8%
Q3 2016+6.1%+7.6%+13.6%
Q2 2016-2.6%-6.3%-0.8%
Q1 2016-0.6%
Q4 2015+1.8%
Q3 2015+1.2%
Q2 2015+0.7%
Q1 2015-1.5%
Q4 2014+3.8%
Q3 2014+3.2%
Q2 2014+2.9%
Q1 2014-2.8%
Q4 2013-6.3%
Q3 2013+1.2%
Q2 2013+2.6%
Q1 2013+5.4%
Q4 2012+0.7%
Q3 2012+3.9%
Q2 2012+6.0%
Q1 2012+0.4%
Q4 2009-1.9%
Q4 2011-1.9%
Q3 2011-4.6%
Q3 2010-4.6%
Q2 2011-5.6%
Q1 2011+4.8%
Q1 2010+4.8%
Q4 2010+4.8%
Q2 2010+4.8%

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