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Aug. 6, 2021, 7:01 a.m. EDT

Lear beats on profit but comes up shy on revenue, lowers full-year outlook given chip supply issues

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By Tomi Kilgore

Shares of Lear Corp. /zigman2/quotes/203548859/composite LEA -3.55% were indicated down nearly 1% in premarket trading Friday, after the auto seating and electronics systems company reported second-quarter profit that beat expectations, revenue that nearly doubled but was shy of forecasts and cut its full-year outlook citing the impact of semiconductor and component shortages. The company swung to net income of $175.2 million, or $2.89 a share, from a loss of $293.9 million, or $4.89 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to $2.45, above the FactSet consensus of $2.41. Sales jumped 94.8% to $4.76 billion but was just below the FactSet consensus of $4.81 billion. Seating sales soared 105.6% to $3.61 billion, just shy of the FactSet consensus of $3.64 billion, while E-Systems sales rose 67.1% to $1.15 billion to match expectations. "As expected, the second quarter was very challenging, given semiconductor supply issues that impacted the auto industry and led to significant production disruptions," said Chief Executive Ray Scott. For 2021, the company lowered its guidance range for sales to $19.7 billion to $20.5 billion from $20.35 billion to $21.15 billion and for free cash flow to $350 million to $500 million from $550 million to $700 million. The stock has dropped 11.9% over the past three months while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.81% has gained 5.4%.

/zigman2/quotes/203548859/composite
US : U.S.: NYSE
$ 127.92
-4.71 -3.55%
Volume: 475,434
May 24, 2022 4:00p
P/E Ratio
35.29
Dividend Yield
2.20%
Market Cap
$7.93 billion
Rev. per Employee
$119,369
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/zigman2/quotes/210599714/realtime
US : S&P US
3,941.48
-32.27 -0.81%
Volume: 2.44B
May 24, 2022 4:55p
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