LEAR CORPORATION Reports Second Quarter Financial Results for FY2023
August 25, 2023
🌥️Earnings Overview
On August 1 2023, LEAR CORPORATION ($NYSE:LEA) announced its financial results for the second quarter of FY2023, ending on June 30 2023. The company’s total revenue for the quarter was USD 5999.2 million, which represented an 18.3% year-over-year growth. Additionally, its net income increased by 146.3% to USD 168.7 million compared to the same period in the previous year.
Price History
The company opened the day with its stock at 156.3, but it closed at 154.4, down by 0.2% from the previous day’s closing price of 154.8. In response to the strong financial performance, LEAR CORPORATION announced that it is planning to invest heavily in its core businesses and expand its product lines over the coming quarters. The company is also planning to invest more funds into research and development in order to capitalize on emerging opportunities in the market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lear Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 22.46k | 522.1 | 2.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lear Corporation. More…
| Operations | Investing | Financing |
| 1.07k | -795.3 | -213.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lear Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 14.8k | 9.71k | 84.78 |
Key Ratios Snapshot
Some of the financial key ratios for Lear Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.7% | 38.3% | 3.7% |
| FCF Margin | ROE | ROA |
| 2.0% | 10.7% | 3.5% |
Analysis
GoodWhale has conducted an analysis of LEAR CORPORATION‘s financials. Our Star Chart illustrates that LEAR CORPORATION has a very high health score of 9/10 with regard to its cashflows and debt, meaning it is capable to withstand any crisis and is not at risk of bankruptcy. We have classified LEAR CORPORATION as a ‘cheetah’ type of company, which typically displays high revenue or earnings growth but is viewed as less stable due to lower profitability. Given LEAR CORPORATION’s position on our Star Chart, we believe investors who are looking to invest in companies that are strong in terms of asset and dividend performance and consider medium growth and profitability to be their main requirements would be ideal investors for this company. With the company being strong in terms of asset and dividend performance, investors should be able to benefit from the company’s future dividends while also having good stability as far as assets are concerned. More…
Peers
In the automotive industry, suppliers of parts and systems are constantly vying for business from the major carmakers. Two of the biggest players in this space are Lear Corporation and Ningbo Joyson Electronic Corporation. Both companies are based in China and have a long history of supplying carmakers with everything from seats and electrical systems to instrument panels and body control modules. While Lear is the bigger company, with annual sales of around $19 billion, Ningbo Joyson is no slouch, with sales of $7.4 billion. The two companies are constantly jockeying for position in the market, with each trying to undercut the other on price while also offering better quality and more innovative products. The competition between these two companies is fierce, but it is also healthy, as it helps to keep both companies on their toes and provides carmakers with a choice of two very competent suppliers.
– Ningbo Joyson Electronic Corp ($SHSE:600699)
Ningbo Joyson Electronic Corp is a Chinese multinational automotive electronic components company headquartered in Ningbo, Zhejiang. The company has a market cap of 21.55B as of 2022 and a Return on Equity of -18.07%. The company manufactures and supplies automotive electronic components and systems for vehicles worldwide. Its products include airbags, seatbelts, steering wheels, instrument panels, door modules, and other safety-related products.
– Denso Corp ($TSE:6902)
Denso Corp is a Japanese company that manufactures automotive components and systems. It has a market cap of 5.37 trillion as of 2022 and a return on equity of 5.0%. The company produces a wide range of products including engine components, electrical components, and air conditioning systems. It also provides services such as engineering, design, and testing. Denso is a leading supplier of components to the automotive industry.
– Aptiv PLC ($NYSE:APTV)
Aptiv PLC is a global technology company that develops safer, greener and more connected solutions that enable the future of mobility. The company has a market cap of 22.94B as of 2022 and a Return on Equity of 4.8%. Aptiv’s products are used in a variety of vehicles, including cars, trucks, buses and trains. The company’s products are designed to make vehicles safer, more efficient and more connected.
Summary
Lear Corporation reported its financial results for the second quarter of FY2023, ending on June 30 2023, showing strong results. Total revenue was USD 5999.2 million, a year-over-year increase of 18.3%. Net income was USD 168.7 million, up 146.3% compared to the same period the previous year.
For investors, these results indicate a positive outlook for the company as it continues to show growth in revenue and income. Lear’s strong financial performance is likely to attract more investors and drive up the company’s stock price over time.
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