Lear Corp. (LEA) Tops Q4 EPS by 10c, Beats on Revenues; Offers FY18 Revenue Mid-Point Guidance Above Consensus

Lear Corp. (NYSE: LEA) reported Q4 EPS of $4.38, $0.10 better than the analyst estimate of $4.28. Revenue for the quarter came in at $5.4 billion versus the consensus estimate of $5.25 billion.

Fourth Quarter 2017

• Record sales of $5.4 billion, up 16% from a year ago
• Net income of $401 million and record adjusted net income of $300 million, compared to $230 million and $270 million, respectively, in the prior year
• Record core operating earnings of $441 million, up 14% from a year ago
• Earnings per share of $5.80 and record adjusted earnings per share up 15% from a year ago to $4.38
• Announced definitive agreement to acquire EXO Technologies

Full Year 2018 Financial Outlook

Our 2018 financial outlook is based on a global industry production assumption of 95.1 million vehicles, up 2% from 2017. On a regional basis, vehicle production is forecasted to be 17.4 million units in North America, up 2%, 23.4 million units in Europe and Africa, up 2%, and 26.5 million units in China, up 1%. Our financial outlook is also based on an average exchange rate of $1.18/Euro for the year.

Sales in 2018 are expected to be in the range of $21.4 to $21.6 billion, and core operating earnings are expected to be in the range of $1,750 million to $1,775 million. Net cash provided by operating activities is estimated to be $1.8 billion, and free cash flow is expected to be more than $1.2 billion.

The Company\'s effective tax rate on an adjusted basis is expected to be approximately 22%. Adjusted net income is expected to be in the range of $1,230 million to $1,250 million.

Pretax operational restructuring costs are estimated to be $65 million, capital expenditures are expected to be $630 million and depreciation and amortization expense is estimated to be $480 million.

GUIDANCE:

Lear Corp. sees FY2018 revenue of $21.4-21.6 billion, versus the consensus of $21.41 billion.

For earnings history and earnings-related data on Lear Corp. (LEA) click here.

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