Courtesy of Benzinga.
Shares of Lear (NYSE: LEA) jumped more than 3% in pre-market trading after the company reported stronger-than-expected second-quarter results and raised its full-year forecast.
The Southfield, Michigan-based company reported quarterly earnings of $149 million, or $1.81 per share, up from $137 million, or $1.60 per share, in the year-ago quarter. Excluding special items, its profit rose 31% to $2.12 per share.
Its revenue surged 11% to $4.6 billion. However, analysts were projecting earnings of $1.97 per share on revenue of $4.44 billion.
Lear’s sales in Europe and Africa climbed 15.5% to $1.83 billion, while sales in Asia jumped 10% to $774.3 million. Sales in North America increased 12% to $1.74 billion, while sales in South America slipped 13% to $237.7 million.
Its costs of sales climbed to $4.21 billion versus $3.78 billion. Global vehicle production climbed 3% y/y.
In the Seating segment, Lear’s sales rose 12% to $3.4 billion, while sales in Electrical segment jumped 9% to $1.1 billion.
Matt Simoncini, Lear’s president and chief executive officer said, “Our record performance in the quarter reflects the investments that we have made in improving our cost structure and expanding our component capabilities globally.”
Lear now projects full-year core operating earnings of $975 million to $1.03 billion, versus its earlier forecast of $935 million to $985 million. It projects sales of $17.6 billion to $17.9 billion, versus $17.2 billion to $17.7 billion.
Lear shares gained 3.28% to $99.21 in pre-market trading.
