Lear Corporation (NYSE: LEA), a prominent leader in automotive technology specializing in Seating and E-Systems, experienced a notable surge in its stock price in today’s pre-market trading, reaching $133.14—an increase of 3.89%. This movement is supported by a trading volume of approximately 2.53K shares and represents a 3.01% uplift from the previous closing, indicating a positive momentum as the market opens. On April 30, 2024, the company announced its first quarter results for 2024, showcasing a series of financial and operational achievements.
First Quarter 2024 Highlights:
Lear reported a record revenue of $6.0 billion for the first quarter, up 3% from $5.8 billion in the same period in 2023.
The company outperformed the global industry, notably marking a 10 percentage point growth over the market in its E-Systems division.
Net income rose to $110 million, and adjusted net income increased to $183 million, up from $144 million and $166 million respectively in Q1 2023.
Core operating earnings grew 6% to $280 million from $263 million in the first quarter of 2023.
Earnings per share were $1.90 and adjusted earnings per share were $3.18, increasing from $2.41 and $2.78 respectively in Q1 2023.
Adjusted earnings per share saw a 14% rise compared to the same period last year.
The company reported a net cash use in operating activities of $(35) million and a free cash flow of $(148) million, slightly improving from $(36) million and $(147) million respectively in the first quarter of 2023.
For the seventh consecutive quarter, Lear reported year-over-year margin improvement in its E-Systems.
Lear announced the acquisition of WIP Industrial Automation, expected to enhance its automation and AI capabilities, with the deal closing projected by Q3 2024.
The company is accelerating its thermal comfort innovations with two modularity projects set to launch in late 2024 and has begun validation for its first complete seat module, slated for a 2026 release in North America.
Lear was awarded its first JIT seat program with FAW Toyota for a new sedan in China and was recognized as a GM Supplier of the Year for the 7th consecutive year, marking the 23rd recognition overall.
At the quarter’s end, Lear reported $930 million in cash and cash equivalents and total liquidity of $2.9 billion.
The company has increased its share repurchase authorization to $1.5 billion, extending the period until December 31, 2026, and repurchased $30 million of its shares while paying out $46 million in dividends.
