Lear (NYSE:LEA – Get Free Report) issued its quarterly earnings data on Friday. The auto parts company reported $4.28 EPS for the quarter, topping the consensus estimate of $3.98 by $0.30, FiscalAI reports. The company had revenue of $6.21 billion during the quarter, compared to analyst estimates of $6.15 billion. Lear had a return on equity of 13.69% and a net margin of 2.25%.During the same quarter in the previous year, the company posted $3.06 earnings per share. Lear’s revenue was up 3.0% compared to the same quarter last year.
Here are the key takeaways from Lear’s conference call:
- Strong second-quarter execution: Sales rose 3% to $6.2 billion, core operating earnings increased 7% to $313 million, adjusted EPS climbed 23% to $4.28, and free cash flow grew 69% to $288 million.
- Lear raised its full-year outlook, including approximately $23.8 billion in revenue and $640 million in free cash flow, and increased its share-repurchase target to at least $350 million for 2026.
- New business awards totaled approximately $2.9 billion year to date, led by major Audi Seating wins and additional awards with Chinese automakers; management said the backlog supports a return to roughly 3%–4% growth above market in 2028–2030.
- IDEA by Lear initiatives are generating measurable savings through automation and digital tools, with $35 million of IDEA savings and $50 million of restructuring savings achieved in the first half; Lear remains on track for $75 million and $80 million, respectively, for the full year.
- China remains the largest near-term risk, with weak domestic demand and continued share loss by traditional automakers; management expects limited growth in 2027, while third-quarter results face seasonal shutdowns and planned downtime for GM full-size truck changeovers.
Lear Price Performance
NYSE LEA opened at $130.63 on Friday. The company has a current ratio of 1.33, a quick ratio of 1.05 and a debt-to-equity ratio of 0.51. Lear has a 12 month low of $91.67 and a 12 month high of $150.33. The stock has a market cap of $6.54 billion, a price-to-earnings ratio of 13.06, a PEG ratio of 0.71 and a beta of 1.25. The company’s 50 day moving average is $140.07 and its two-hundred day moving average is $131.11.
Lear Dividend Announcement
Analysts Set New Price Targets
LEA has been the topic of several research reports. Barclays raised their target price on Lear from $150.00 to $155.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 9th. UBS Group dropped their price objective on shares of Lear from $145.00 to $135.00 and set a “neutral” rating on the stock in a report on Tuesday, April 14th. Weiss Ratings upgraded shares of Lear from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $140.00 target price on shares of Lear in a report on Saturday. Finally, Royal Bank Of Canada increased their price target on shares of Lear from $138.00 to $143.00 and gave the stock a “sector perform” rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, Lear has a consensus rating of “Hold” and a consensus target price of $145.31.
Get Our Latest Stock Analysis on LEA
Trending Headlines about Lear
Here are the key news stories impacting Lear this week:
- Positive Sentiment: Lear reported second-quarter adjusted EPS of $4.28, above the approximately $3.98 consensus estimate, while revenue of $6.21 billion also exceeded expectations of roughly $6.15 billion. EPS rose from $3.06 a year earlier and revenue increased 3%. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
- Positive Sentiment: The company raised the midpoints of its 2026 outlook, targeting revenue of approximately $23.54 billion to $24.01 billion and core operating earnings of about $1.08 billion to $1.20 billion. Lear cited roughly 3% year-over-year revenue growth, gains above overall vehicle-market growth, and improving operating margins. Lear Reports Second Quarter 2026 Results; Raises Full-Year Guidance
- Positive Sentiment: Adjusted EPS increased about 23% year over year, free cash flow improved by approximately $117 million, and Lear repurchased $100 million of stock during the quarter. Lear Corporation 2026 Q2 Results Presentation
- Neutral Sentiment: Analyst price targets remain mixed, with recent targets ranging from $131 to $179 and a six-month median of $145.50, indicating differing views on Lear’s earnings power and automotive-market prospects.
- Negative Sentiment: Investors appear to have treated the results as a “sell-the-news” event because the guidance increase and margin improvement may not have exceeded already high expectations. Separately, reported insider activity showed 20 open-market sales and no purchases over the past six months, which may add to near-term sentiment pressure. Lear Slides After Q2 Despite Higher 2026 Outlook
Insider Activity
In other news, CFO Jason M. Cardew sold 5,000 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $147.50, for a total value of $737,500.00. Following the completion of the sale, the chief financial officer directly owned 13,241 shares of the company’s stock, valued at $1,953,047.50. This represents a 27.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Nicholas Jon Roelli sold 2,336 shares of Lear stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $141.38, for a total transaction of $330,263.68. Following the transaction, the senior vice president owned 2,339 shares in the company, valued at approximately $330,687.82. This trade represents a 49.97% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 62,026 shares of company stock valued at $8,498,248. 1.02% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On Lear
A number of hedge funds have recently made changes to their positions in LEA. Balyasny Asset Management L.P. purchased a new position in shares of Lear during the second quarter valued at about $39,656,000. Caisse de depot et placement du Quebec purchased a new stake in shares of Lear in the third quarter worth about $40,984,000. AQR Capital Management LLC boosted its stake in Lear by 34.1% during the fourth quarter. AQR Capital Management LLC now owns 789,745 shares of the auto parts company’s stock valued at $90,505,000 after buying an additional 200,617 shares during the last quarter. Millennium Management LLC grew its holdings in Lear by 4,256.1% during the 4th quarter. Millennium Management LLC now owns 155,424 shares of the auto parts company’s stock valued at $17,812,000 after buying an additional 151,856 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. grew its holdings in Lear by 20.6% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 734,087 shares of the auto parts company’s stock valued at $73,856,000 after buying an additional 125,422 shares in the last quarter. Institutional investors own 97.04% of the company’s stock.
Lear Company Profile
Lear Corporation (NYSE: LEA) is a global supplier of automotive seating and electrical distribution systems. The company designs, engineers and manufactures complete seat systems, seat components and power solutions for major vehicle manufacturers. Its electrical business delivers modules and components for battery management, infotainment, body and safety electronics, as well as advanced connectivity and electrification solutions.
The seating division develops lightweight, ergonomic seat structures, trim and mechanisms that address comfort, safety and environmental targets.
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