Lear Corporation LEA, a global leader in automotive technology for Seating and E-Systems, has closed the acquisition of WIP Industrial Automation. The agreement for this acquisition was signed on Apr 29, 2024. The transaction's terms were not disclosed.
WIP, Lear’s supplier for 25 years, specializes in developing, integrating and deploying advanced automation technologies for production applications. With strong expertise in robotics and AI-based computer vision, WIP is set to enhance Lear's capabilities in ensuring safety and quality in modern manufacturing. This acquisition will enable Lear to improve operational efficiency and better manage macroeconomic challenges, such as high wage inflation.
This acquisition follows Lear’s successful integrations of ASI Automation, Thagora Technology SRL and InTouch Automation under the IDEA by Lear initiative, which aims to leverage technology and innovation for product development and operational excellence. Together, these acquisitions provide Lear with a comprehensive portfolio of automation solutions and expertise, accelerating the advancement of next-generation automation technologies.
Per Ray Scott, president and CEO of Lear, the acquisition will boost the company's profitability and enhance its ability to quickly deliver innovative solutions to customers.
Driven by frequent business wins because of innovative product launches, strength across both business segments and the Lear Forward initiative (aimed at improving operational efficiencies), the company is expecting its full-year net sales in the band of $24-$24.6 billion, up from $23.5 billion recorded in 2023. Core operating earnings are envisioned in the range of $1.15-$1.30 billion, marking an uptick from $1.12 billion generated in 2023.
Zacks Rank & Key Picks
LEA currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the auto space are Suzuki Motor Corporation SZKMY, Honda Motor Co., Ltd. HMC and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SZKMY’s 2025 earnings suggests year-over-year growth of 2.09%. EPS estimates for 2025 and 2026 have improved 38 cents and 15 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for HMC’s 2025 sales and earnings suggests year-over-year growth of 0.73%. EPS estimates for 2025 have improved 9 cents in the past 60 days.
The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have moved up 2 cents in the past 60 days. The same for 2025 has moved up 5 cents in the past 30 days.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
