Earnings Preview: Lear Corp.

Lear Corp (LEA) is expected to report Q2 earnings before market open Tuesday, July 29, with a conference call scheduled for 9:00 am ET.

Guidance

Analysts are expecting a profit of 68c on revenue of $3.90B. The consensus range for EPS is 43c to 90c, with a revenue range of $3.72B to $4.04B, according to First Call.

Analyst Views

For Q1, the company reported EPS $1.00 vs. consensus of 48c. At the time of its Q1 earnings release, Lear reaffirmed 2008 guidance and Calyon Securities said that "restructuring pays off." Positives for this earnings quarter include international demand, and cost savings from restructurings and currency translations. Negatives for this earnings period include strikes and the slumping economy which effected automobile and truck production levels. Also, increased raw materials are likely to hurt bottom line results.

Citigroup lowered its price targets in the U.S. Autos & Auto Parts sector following June sales. The firm believes the "perfect storm" conditions that hit the industry in May intensified in June, given the combination of worsening consumer conditions and depressed used vehicle prices. The firm lowered its price target for Lear to $17 from $31.