Shares of Lear Corp. (
) rose 0.9% and closed at $99.12 on Aug 20 after media reports
revealed that the company is nearing the closing of the Eagle
Ottawa LLC acquisition deal, involving over $800 million.
Auburn Hills, MI-based Eagle Ottawa is a supplier of premium
automotive leather products utilized by different brands of
vehicles including the likes of BMW, Buick, Honda Motor Co., Ltd. (
), Volvo, Renault, Chrysler and Mercedes-Benz. In 2006, Lear
expanded its leather operations with the introduction of the
Aventino premium leather for seat ventilation and customizable
Eagle Ottawa is currently owned by Milwaukee-based investment firm
Everett Smith Group Ltd. The deal with Lear is expected to be
completed in the next couple of weeks.
Lear posted adjusted earnings per share of $2.12 in the second
quarter of 2014, marking a 31% rise from $1.62 in the year-ago
quarter. Moreover, earnings beat the Zacks Consensus Estimate of
$1.96. Adjusted net income amounted to $174 million, up 26% over
the second quarter of 2013. Revenues increased 11% to $4.59 billion
in the reported quarter, beating the Zacks Consensus Estimate of
For 2014, Lear anticipates revenues in the range of $17.6-$17.9
billion. Meanwhile, adjusted net earnings are forecasted in the
$610-$645 million band for the year. Core operating earnings are
estimated to come in between $975 million and $1.03 billion, up
from the previous outlook of $935-$985 million.
Lear produces auto seats and electrical power systems for
automakers like Ford Motor Co. (
), General Motors Company (
) and BMW AG. Importantly, these companies generated 54% of Lear's
sales in 2013.
Currently, Lear carries a Zacks Rank #3 (Hold).
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