Lear Corporation Stock Slips As Q1 Revenues Miss Estimates, Announces Plant Closures In Europe
Portfolio Pulse from Nabaparna Bhattacharya
Lear Corporation (NYSE:LEA) reported Q1 earnings with adjusted EPS of $3.18, surpassing estimates of $3.02, but missed revenue forecasts with $5.995 billion against expectations of $6.01 billion. The company announced operational restructuring including plant closures in Europe to improve cost structures amid a 1% decrease in global vehicle production. Despite this, LEA reaffirmed its full-year 2024 revenue outlook of $24.0 billion to $24.6 billion and adjusted EBITDA of $1.795 billion to $1.945 billion. Shares fell by 5.04% to $130.32.
April 30, 2024 | 3:55 pm
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Lear Corporation reported higher than expected Q1 EPS but missed revenue targets and announced plant closures in Europe, leading to a 5.04% drop in share price.
The mixed Q1 earnings report, with an EPS beat but a slight miss on revenue expectations, coupled with the announcement of plant closures in Europe, likely contributed to negative investor sentiment. The reaffirmation of the full-year outlook suggests a stable long-term perspective, but the immediate reaction was negative, reflecting concerns over short-term challenges.
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IMPORTANCE 90
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