Looking at Lear Corporation’s (

NYSE:LEA

) earnings update in September 2018,origins of septum piercing analyst consensus outlook appear bearish, with earnings expected to decline by -7.9% in the upcoming year compared with the past 5-year average growth rate of 17%. With trailing-twelve-month net income at current levels of US$1.3b, the consensus growth rate suggests that earnings will decline to US$1.2b by 2020. Below is a brief commentary around Lear’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should

research its fundamentals here

.

Check out our latest analysis for Lear

Exciting times ahead?

Over the next three years, it seems the consensus view of the 17 analysts covering LEA is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To get an idea of the overall earnings growth trend for LEA, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.

NYSE:LEA Future Profit January 2nd 19

By 2022, LEA’s earnings should reach US$1.3b, from current levels of US$1.3b, resulting in an annual growth rate of 4.1%. EPS reaches $22.7 in the final year of forecast compared to the current $18.79 EPS today. However, the near term margins may change heading into 2022, from the current levels of 6.3% to 5.9%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Lear, there are three important aspects you should further research:

Financial Health

: Does it have a healthy balance sheet? Take a look at our

free balance sheet analysis with six simple checks

on key factors like leverage and risk.

Valuation

: What is Lear worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The

intrinsic value infographic in our free research report

helps visualize whether Lear is currently mispriced by the market.

Other High-Growth Alternatives

: Are there other high-growth stocks you could be holding instead of Lear? Explore

our interactive list of stocks with large growth potential

to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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