The 10-second takeaway
For the quarter ended June 30 (Q2), Visteon missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share improved significantly.
Gross margins contracted, operating margins dropped, and net margins increased.
Visteon logged revenue of $1.69 billion. The four analysts polled by S&P Capital IQ predicted revenue of $1.76 billion on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $2.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.82. The five earnings estimates compiled by S&P Capital IQ predicted $0.79 per share. GAAP EPS of $1.40 for Q2 were 180% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.6%, 180 basis points worse than the prior-year quarter. Operating margin was 2.4%, 210 basis points worse than the prior-year quarter. Net margin was 4.4%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.65 billion. On the bottom line, the average EPS estimate is $0.59.
Next year's average estimate for revenue is $6.78 billion. The average EPS estimate is $3.03.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 47 members out of 55 rating the stock outperform, and eight members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Visteon a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Visteon is hold, with an average price target of $58.60.
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