The 10-second takeaway
For the quarter ended March 31 (Q1), Visteon missed estimates on revenue but crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank to a loss.
Gross margin improved, operating margin was steady, and net margin shrank.
Visteon booked revenue of $1.72 billion. The two analysts polled by S&P Capital IQ wanted to see revenue of $1.77 billion on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $1.85 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 $0.96. The three earnings estimates compiled by S&P Capital IQ predicted $0.65 per share. GAAP EPS were -$0.56 for Q1, versus $0.75 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.8%, 10 basis points better than the prior-year quarter. Operating margin was 2.5%, about the same as the prior-year quarter. Net margin was -1.7%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.79 billion. On the bottom line, the average EPS estimate is $0.90.
Next year's average estimate for revenue is $7.17 billion. The average EPS estimate is $3.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 50 members rating the stock outperform and four members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Visteon a green thumbs-up, and two 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 $62.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.