Lear Corporation posts strong results as both segments rev back up

Artit_Wongpradu

Lear Corporation (NYSE:LEA) posted strong results for FQ3 with higher industry volumes and new business backlog in the mix.

Sales were up 26% during the quarter excluding the impact of FX and was one point above market. The impact of new business in both business segments largely offset negative platform mix.

Adjusted margin was 6.6% of sales for the seating segment during the quarter and 3.9% of sales for the E-Systems segment.

During the quarter, net cash provided by operating activities was $252M and free cash flow was $112M.

Looking ahead, Lear (LEA) expects further improvement in both business segments in Q4.

Lear guidance: Net Sales of $20.55B to $21.05B vs. consensus of $20.71B, adjusted EBITDA of $1.405B to $1.505B vs. $1.43B consensus, core operating earnings of $815M to $915M, operating cash flow of $950M to $1,075M and free cash flow of $275M to $375M.

Shares of Lear traded flat in the premarket session after the earnings topper.