LEA – Market expectations are for a decline in Uniform ROA, but management is confident about production growth and margin expansion

• Lear Corporation (LEA:USA) currently trades slightly below corporate averages relative to Uniform Earnings, with a 9.1x Uniform P/E, implying bearish expectations for the firm. That said, management is confident about ongoing production growth and margin expansion
• Specifically, management is confident in their ability to ramp production volume in the second half of the year, and they are confident in their ability to reverse recent margin compression by lowering launch costs. Additionally, they are confident Xevo will have a positive margin impact for the year.