Analyst Note| Richard Hilgert |
Narrow-moat-rated Lear reported first quarter earnings per share before special items of $1.80, beating the $1.59 FactSet consensus estimate by $0.21 but dropping $1.93 from $3.73 EPS reported a year ago. Results were hit by sporadic customer production from the chip crunch, China's COVID-19 lockdowns, the Ukraine crisis, supply chain disruption, higher raw material cost, and increased logistic expense. Revenue declined 3% to $5.2 billion from $5.4 billion last year, better than consensus by 4%. The 3% decline represented a 4-percentage point outperformance over the 7% decline in global light vehicle production adjusted to Lear’s customer base.