Analyst Note
| Richard Hilgert |Narrow-moat-rated Lear reported third-quarter earnings per share before special items of $0.53, missing the $0.61 FactSet consensus estimate by $0.08 and dropping $3.20 from EPS of $3.73 reported a year ago. Results were smacked by sporadic customer production caused by the chip crunch. Revenue declined 13% to $4.3 billion from $4.9 billion last year. Year-over-year organic revenue was down 15.0% due to favorable currency but represented a 9-percentage-point outperformance versus production adjusted to Lear’s customer base.