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.
If you're looking for an edge in the transportation segment of the market, consider strong, smaller brands that sell their products to folks like you and me. We've got a couple to offer, plus a home-owner's trusted go-to company, in our new special report, "Middle-Class Millionaire-Makers: 3 Stocks Wall Street's Too Rich to Notice." Click here for instant access to this free report.
- Add Visteon to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.