The 10-second takeaway
For the quarter ended March 31 (Q1), Visteon beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins grew across the board.
Visteon notched revenue of $1.86 billion. The three analysts polled by S&P Capital IQ wanted to see a top line of $1.74 billion on the same basis. GAAP reported sales were 8.1% higher than the prior-year quarter's $1.72 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 $2.02. The four earnings estimates compiled by S&P Capital IQ predicted $1.07 per share. Non-GAAP EPS of $2.02 for Q1 were 110% higher than the prior-year quarter's $0.96 per share. (The prior-year quarter included $0.06 per share in earnings from discontinued operations.) GAAP EPS were $1.33 for Q1 compared to -$0.56 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 8.3%, 50 basis points better than the prior-year quarter. Operating margin was 3.7%, 120 basis points better than the prior-year quarter. Net margin was 3.7%, 540 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.81 billion. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $7.36 billion. The average EPS estimate is $4.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 48 members out of 52 rating the stock outperform, and four members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 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 buy, with an average price target of $70.20.
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