Stock Monitor: Monro Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 06, 2018 / Active-Investors.com has just released a free earnings report on Lear Corp. (NYSE: LEA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=LEA. Lear reported its fourth quarter and fiscal 2017 operating and financial results on January 26, 2018. The automotive seating and electrical distribution systems Company outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Monro, Inc. (NASDAQ: MNRO), which also belongs to the Consumer Goods sector as the Company Lear. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/'symbol=MNRO
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Lear most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=LEA
Earnings Highlights and Summary
For the fourth quarter fiscal 2017, Lear's sales advanced 16% to a record $5.36 billion compared to sales of $4.64 billion in Q4 2016. Excluding the impact of foreign exchange, the Company's sales grew 11% on a y-o-y basis. Sales growth reflected the addition of new business in both of Lear's product segments and the acquisition of Grupo Antolin's seating business. The Company's reported numbers exceeded analysts' estimates of $5.27 billion.
Lear's sales for the full year (FY) 2017 increased 10% to $20.47 billion compared to sales of $18.56 billion in FY16. Excluding the impact of foreign exchange, sales were up 9%.
During Q4 2017, Lear's core operating earnings jumped 14% to $441.1 million, or 8.2% of sales, primarily reflecting the increase in sales. In the Seating segment, margins and adjusted margins were 7.5% and 8.1% of sales, respectively. In the E-Systems segment, margins and adjusted margins were 13.2% and 14.3% of sales, respectively.
For Q4 2017, Lear reported net income of $400.5 million, or $5.80 per share, compared to net income of $229.9 million, or $3.24 per share, in Q4 2016. In the reported quarter, the Company recognized one-time net tax benefits of $146 million, comprised of $290 million of foreign tax credit benefits from the repatriation of certain foreign earnings and $30 million of other discrete tax benefits, offset by a $131 million one-time transition tax on accumulated foreign earnings and $43 million of tax expense to reflect the new US corporate tax rate of 21% and other tax reform changes to Lear's deferred tax accounts.
On an adjusted basis, the Company posted record net income of $300.4 million, or $4.38 per share, up 11% and 14%, respectively, reflecting improved operating earnings and a reduced share count. The Company's earnings surpassed Wall Street's estimates of $4.25 per share.
For FY17, Lear posted record net income of $1.31 billion, or $18.59 per share, compared to net income of $975 million, or $13.33 per share. On an adjusted basis, the Company posted record adjusted net income of $1.18 billion, or $17.00 per share, compared to $1.03 billion, or $14.03 per share, in FY16.
Cash Matters
During Q4 2017, Lear's net cash provided by operating activities was $599 million and free cash flow was $435 million. For FY17, the Company's net cash provided by operating activities totaled $1.78 billion, and free cash flow was $1.19 billion.
During Q4 2017, Lear repurchased approximately 700,000 shares of its common stock for a total of $122 million. As of the end of the reported quarter, the Company had a remaining share repurchase authorization of $546 million, which expires on December 31, 2019. Since initiating the share repurchase program in early 2011, Lear has repurchased 44.1 million shares of its common stock for a total of $3.5 billion at an average price of $79.73 per share. This represents a reduction of approximately 42% of the Company's shares outstanding since the beginning of the program.
Financial Outlook
For full year 2018, Lear is forecasting sales to be in the range of $21.4 billion to $21.6 billion, and core operating earnings to be in the band of $1.75 billion to $1.775 million. The Company's net cash provided by operating activities is estimated to be $1.8 billion, and free cash flow is expected to be more than $1.2 billion.
The Company's effective tax rate on an adjusted basis is expected to be approximately 22% and adjusted net income is expected to be in the range of $1.23 billion to $1.25 billion.
For FY18, Lear is expecting pretax operational restructuring costs to be $65 million, capital expenditures to be $630 million, and depreciation and amortization expense to be $480 million.
Stock Performance Snapshot
February 05, 2018 - At Monday's closing bell, Lear's stock declined 3.98%, ending the trading session at $178.71.
Volume traded for the day: 697.35 thousand shares, which was above the 3-month average volume of 502.42 thousand shares.
Stock performance in the last three-month - up 1.06%; previous six-month period - up 22.41%; past twelve-month period - up 26.97%; and year-to-date - up 1.16%
After yesterday's close, Lear's market cap was at $12.50 billion.
Price to Earnings (P/E) ratio was at 9.42.
The stock has a dividend yield of 1.12%.
The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.
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