Lear Q1 Earnings Top Estimates; Cuts FY22 Outlook

Lear Corp LEA reported a first-quarter FY22 sales decline of 3% year-on-year to $5.21 billion, beating the consensus of $5.04 billion.
Global vehicle production decreased 4% Y/Y, with North America down 2%, Europe shedding 18%, and China climbing 8%.
Net sales from North America rose 9.3% Y/Y, Europe and Africa fell 13.8%, Asia decreased 5.1%, and South America rose 4.8%.
Selling, general and administrative expenses rose 5% Y/Y to $177.3 million.
Core operating income for the quarter nearly halved to $183.7 million, with a margin of 3.5%.
Lear held $1.2 billion in cash and equivalents as of April 2, 2022. Net cash provided by operating activities in Q1 amounted to $221 million with a free cash flow of $90 million.
Adjusted EPS of $1.80 beat the analyst consensus of $1.57.
Outlook: Lear sees FY22 sales of $20.4 billion - $21.20 billion (prior view $20.8 billion - $22.30 billion), against the consensus of $21.49 billion.
It sees FY22 adjusted EBITDA of $1.365 billion - $1.565 billion (prior view: $1.50 billion - $1.80 billion).
Price Action: LEA shares closed lower by 1.49% at $129.84 on Tuesday.

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