Lear (NYSE:LEA) will release its quarterly earnings report on Friday, 2025-07-25. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Lear to report an earnings per share (EPS) of $3.27.
Lear bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings History Snapshot
The company's EPS beat by $0.42 in the last quarter, leading to a 0.46% drop in the share price on the following day.
Here's a look at Lear's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.70 | 2.58 | 2.63 | 3.4 |
| EPS Actual | 3.12 | 2.94 | 2.89 | 3.6 |
| Price Change % | -0.0% | 2.0% | 0.0% | 1.0% |
Market Performance of Lear's Stock
Shares of Lear were trading at $108.79 as of July 23. Over the last 52-week period, shares are down 10.41%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Observations about Lear
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Lear.
Lear has received a total of 10 ratings from analysts, with the consensus rating as Neutral. With an average one-year price target of $110.9, the consensus suggests a potential 1.94% upside.
Peer Ratings Comparison
The following analysis focuses on the analyst ratings and average 1-year price targets of Gentex, Modine Manufacturing and BorgWarner, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Gentex, with an average 1-year price target of $24.5, suggesting a potential 77.48% downside.
- Analysts currently favor an Outperform trajectory for Modine Manufacturing, with an average 1-year price target of $122.67, suggesting a potential 12.76% upside.
- Analysts currently favor an Neutral trajectory for BorgWarner, with an average 1-year price target of $39.56, suggesting a potential 63.64% downside.
Summary of Peers Analysis
The peer analysis summary offers a detailed examination of key metrics for Gentex, Modine Manufacturing and BorgWarner, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Lear | Neutral | -7.24% | $359.20M | 1.77% |
| Gentex | Neutral | -2.28% | $191.73M | 3.78% |
| Modine Manufacturing | Outperform | 7.24% | $166M | 5.62% |
| BorgWarner | Neutral | -2.23% | $639M | 2.79% |
Key Takeaway:
Lear is positioned in the middle among its peers for revenue growth, with one company outperforming and two underperforming. In terms of gross profit, Lear ranks at the top. For return on equity, Lear is in the middle compared to its peers.
About Lear
Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high-voltage battery management systems. The company earns majority of its revenue from the seating segment.
Lear's Economic Impact: An Analysis
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Lear's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -7.24%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Lear's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.45% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Lear's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 1.77%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Lear's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.56% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Lear's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.59.
To track all earnings releases for Lear visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Latest Ratings for LEA
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Jul 2025 | Barclays | Maintains | Equal-Weight | Equal-Weight |
| Jul 2025 | UBS | Maintains | Neutral | Neutral |
| Jul 2025 | Wells Fargo | Maintains | Equal-Weight | Equal-Weight |
View More Analyst Ratings for LEA
View the Latest Analyst Ratings
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