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LEA NYSE· Lear Corporation
Earnings report Q4 2023

LEA Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, LEA reported net sales of $23.47 billion, representing a significant increase from $20.89 billion in the previous year. The company's Seating segment accounted for the majority of the revenue, with net sales of $17.55 billion, reflecting a 12% growth compared to the previous year. The E-Systems segment also saw a notable increase in net sales, reaching $5.92 billion, a 14% growth compared to the previous year.

Strengths

LEA's strong revenue growth in the latest quarter can be attributed to several factors. Higher production volumes on Lear platforms and new business opportunities positively impacted net sales in both the Seating and E-Systems segments. Additionally, the company's acquisitions of IGB and Kongsberg ICS contributed to the increase in net sales in the Seating segment. LEA's management highlighted the higher earnings of certain joint ventures in Asia as a significant factor in the overall increase in net income.

Challenges

While LEA experienced strong revenue growth, it is important to note that the company also incurred certain expenses. Cost of sales amounted to $21.76 billion, reflecting an increase from $19.48 billion in the previous year. Selling, general, and administrative expenses also increased to $714.7 million. These factors may pose challenges to LEA's profitability and overall financial performance.

Noteworthy

LEA's consolidated net income for the latest quarter was $645.7 million, a significant increase from $408.7 million in the previous year. Diluted net income per share also saw a notable growth, reaching $9.68 compared to $5.47 in the previous year. The company's net income attributable to Lear increased to $573 million, reflecting the positive impact of higher earnings and improved financial performance.

Summary

LEA delivered a strong financial performance in the latest quarter, with significant revenue growth driven by higher production volumes, new business opportunities, and successful acquisitions. The company's Seating segment was the primary contributor to the revenue increase, supported by the positive impact of joint ventures in Asia. However, LEA also faced challenges in terms of increased expenses, which may impact profitability. Overall, LEA's strong revenue growth and improved financial performance position the company favorably in the market.

Source documents

Form 10-K  filed on Feb 08, 2024
123 pages scanned

Reference data

Company financials Q4 revenue 5.84B
Analyst estimates Q4 EPS beat by 15.79%
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