Lear Rises After Raising Yearly Sales Forecast: MoverMegan Durisin
Lear Corp., a maker of car seating and electrical systems, climbed to a post-bankruptcy high after the company raised its 2013 sales forecast and posted second-quarter earnings that exceeded estimates.
The shares rose 2.8 percent to $67.80 in New York, the highest closing price since Lear exited bankruptcy in November 2009. The stock has surged 45 percent this year, compared with a 19 percent increase in the Russell 1000 Index.
Lear, based in Southfield, Michigan, reported second-quarter net income of $137.3 million, down from $145.4 million a year earlier. Excluding one-time items, the per-share profit was $1.62, more than the $1.36 average of 15 analysts surveyed by Bloomberg. The company also raised its full-year sales forecast to $15.8 billion, from as much as $15.5 billion.
The quarterly profit was “an all-around solid beat,” Brian Johnson, a Chicago-based analyst with Barclays Plc, wrote in a report. Lear’s forecast “appears conservative,” he said.
Ford Motor Co. and General Motors Co. this week posted second-quarter results that surpassed estimates. Ford reported a per-share profit, excluding one-time items, of 45 cents, ahead of the 37-cent average of 17 estimates. GM said its adjusted profit totaled 84 cents a share, compared with the 77-cent average of 13 estimates.
“We’ve had a good year winning business,” Lear Chief Executive Officer Matt Simoncini said on a conference call with investors. “We expect that trend to continue.”