The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Visteon met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins grew, net margins dropped.
Visteon reported revenue of $1.62 billion. The three analysts polled by S&P Capital IQ expected to see net sales of $1.61 billion on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $2.04 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 $0.30. The five earnings estimates compiled by S&P Capital IQ anticipated $0.48 per share. GAAP EPS of $0.28 for Q3 were 65% lower than the prior-year quarter's $0.79 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 7.9%, 60 basis points better than the prior-year quarter. Operating margin was 2.5%, 10 basis points better than the prior-year quarter. Net margin was 0.9%, 110 basis points worse 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 $0.67.
Next year's average estimate for revenue is $6.66 billion. The average EPS estimate is $3.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 44 members out of 49 rating the stock outperform, and five members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Visteon a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Visteon is outperform, with an average price target of $54.40.
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