Lear Corp. LEA reported its first quarter 2025 adjusted earnings per share of $3.12, which beat the Zacks Consensus Estimate of $2.64, thanks to higher-than-expected revenues and profits from the Seating segment. The bottom line, however, decreased from $3.18 reported in the year-ago quarter.
In the reported quarter, revenues decreased 7.24% year over year to $5.56 billion but surpassed the Zacks Consensus Estimate of $5.55 billion.
Lear Corporation Price, Consensus and EPS Surprise
Lear Corporation Price, Consensus and EPS Surprise
Sales of the Seating segment totaled $4.15 billion in the reported quarter, down from $4.48 billion generated in the year-ago quarter but surpassed the Zacks Consensus Estimate by 1.1%. Adjusted segment earnings amounted to $280 million, down from $294.9 million recorded in the year-ago quarter but beat the Zacks Consensus Estimate by 16.2%. The segment recorded adjusted margins of 6.7% of sales, up from 6.6% recorded in the previous year’s quarter.
Sales of the E-Systems segment totaled $1.41 billion, which fell 7.12% year over year and missed the Zacks Consensus Estimate by 0.5%. Adjusted segmental earnings amounted to $73.8 million, down from $77.1 million in the corresponding quarter of 2024. The figure, however, surpassed the Zacks Consensus Estimate by 25.4%. For the E-Systems segment, the adjusted margin was 5.2% of sales, up from 5.1% in the year-ago quarter.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Performance by Region
Sales in the North America region decreased 9.2% year over year to $2.25 billion in the quarter under review and missed the Zacks Consensus Estimate by 2.43%.
Sales in the Europe and Africa region fell 8.5% year over year to $2.06 billion, beating the Zacks Consensus Estimate by 7.28%.
Sales in the Asia region totaled $1.07 billion in the quarter, which increased 1.12% year over year and missed the Zacks Consensus Estimate by 0.5%.
Sales in the South America region totaled $177.8 million in the quarter, down from $205.2 million generated in the year-ago period and missing the Zacks Consensus Estimate by 18.35%.
Financial Position & Other Tidbits
The company had $779.9 million in cash and cash equivalents as of March 29, 2025, compared with $1.05 billion as of Dec. 31, 2024. Long-term debt was $2.73 billion as of March 29, 2025, unchanged from 2024-end levels.
During the quarter under discussion, net cash used in operating activities totaled $128 million. The company posted a negative FCF of $231.7 million in the quarter.
During the quarter, LEA repurchased 263,003 shares of its common stock for a total of $25 million. At the end of the quarter, Lear had a remaining share repurchase authorization of nearly $1.1 billion.
Lear hasn’t reaffirmed its full year 2025 guidance amidst uncertain macroeconomic conditions as a result of tariff policies.
LEA currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Key Releases From the Auto Space
Autoliv Inc. ALV reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter. The figure beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year.
Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion. Operating cash flow in the quarter under review was $77 million, and capital expenditure amounted to $93 million, resulting in a negative free cash flow of $16 million. In the quarter, ALV paid a dividend of 70 cents per share and repurchased 0.5 million shares.
Mobileye Global Inc. MBLY reported first-quarter 2025 adjusted earnings per share of 8 cents. The figure was in line with the Zacks Consensus Estimate. The company reported a loss of 7 cents per share in the year-ago quarter. Total revenues amounted to $438 million, beating the Zacks Consensus Estimate of $434 million. The metric also rose 83% year over year.
MBLY had cash and cash equivalents of $1.51 billion as of March 29, 2025, compared with $1.43 billion as of Dec. 28, 2024. Operating cash flow for the three months ended March 29, 2025, was $109 million. Capex was $14 million during the same time frame.
Group 1 Automotive GPI reported first-quarter 2025 adjusted earnings per share of $10.17, which beat the Zacks Consensus Estimate of $9.68 and rose 7.17% year over year. The automotive retailer registered net sales of $5.51 billion, beating the Zacks Consensus Estimate of $5.34 billion. The top line also rose from the year-ago quarter’s $4.47 billion.
Group 1 had cash and cash equivalents of $70.5 million as of March 31, 2025, up from $34.4 million as of Dec. 31, 2024. Total debt was $2.8 billion as of March 31, 2025, down from $2.91 billion as of Dec. 31, 2024.
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