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Lear Corporation Declared a Dividend of $0.30 per Share


May. 20 2016, Published 10:55 a.m. ET

Price movement 

Lear Corporation (LEA) has a market cap of $8.3 billion. It fell by 1.8% and closed at $111.80 per share on May 19, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -2.4%, -1.1%, and -8.7%, respectively. This means that Lear is trading 2.7% below its 20-day moving average, 0.36% above its 50-day moving average, and 0.46% above its 200-day moving average.

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Related ETF and peers

The Schwab US Mid-Cap ETF (SCHM) invests 0.34% of its holdings in Lear. SCHM tracks a market-cap-weighted index of mid-cap stocks in the D0w Jones US Total Stock Market Index. SCHM’s YTD price movement was 1.6% as of May 19, 2016.

The market caps of Lear’s competitors are as follows:

  • Johnson Controls (JCI) – $27.8 billion
  • Delphi Automotive (DLPH) – $18.3 billion
  • Magna International (MGA) – $15.7 billion

Lear Corporation declared a dividend

Lear Corporation declared a quarterly cash dividend of $0.30 per share on its common stock. The dividend will be paid on June 30, 2016, to shareholders of record at the close of business on June 10, 2016.

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Performance in fiscal 1Q16

Lear Corporation reported fiscal 1Q16 net sales of $4.7 billion—a rise of 3.1% compared to net sales of $4.5 billion in fiscal 1Q15. The company’s cost of sales as a percentage of net sales fell by 2.2% in fiscal 1Q16.

Its net income and EPS (earnings per share) rose to $248.4 million and $3.29, respectively, in fiscal 1Q16—compared to $147.3 million and $1.86, respectively, in fiscal 1Q15. It reported adjusted EPS of $3.40 in fiscal 1Q16—a rise of 49.1% compared to fiscal 1Q15.

Lear’s cash and cash equivalents fell by 1.9% and its inventories rose by 6.6% in fiscal 1Q16—compared to fiscal 4Q15. Its current ratio fell to 1.35x, and its DE (debt-to-equity) ratio rose to 2.2x in fiscal 1Q16—compared to a current ratio and a DE ratio of 1.38x and 2.1x, respectively, in fiscal 4Q15.

During fiscal 1Q16, it repurchased ~1.4 million shares of its common stock worth $155 million.


The company made the following projections for fiscal 2016:

  • sales of $18.5 billion–$19.0 billion
  • core operating earnings of $1.40 billion–$1.45 billion
  • free cash flow of ~$850 million
  • effective tax rate of ~28%
  • adjusted net income of $900 million–$940 million
  • pretax operational restructuring costs of ~$70 million
  • capital spending of ~$525 million

In the next part, we’ll look at Church & Dwight.


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