Visteon Q4 Revenues Dip 7%, Issues FY24 Revenue Outlook Below Estimates

Visteon Corporation VC reported fourth-quarter sales of $990 million, missing the street view of $1.049 billion. 

Quarterly sales fell almost 7% year over year. The decline in net sales was primarily due to lower recoveries resulting from improved semiconductor supply in 2023.

Adjusted EBITDA of $117 million in the fourth quarter increased $14 million compared to the prior year, primarily reflecting strong operating performance, the ongoing benefits of cost and commercial discipline, and lower net engineering cost due in part to the timing of project spending.

Adjusted EBITDA margin was 11.8% of sales, an increase of 210 basis points compared to the prior year. Gross margin in the fourth quarter was $130 million, higher than $114 million a year ago. Visteon launched 129 new products in 2023. 

The company reported adjusted earnings per share of $1.91, missing the analyst consensus of $2.09. The adjusted earnings per share excludes a non-cash tax benefit of $313 million, or $11.10 per diluted share.

Visteon repurchased $106 million of shares during 2023 under the $300 million share repurchase authorization announced in March 2023.

Outlook: Visteon expects FY24 net sales of $4 billion-$4.2 billion (estimate: $4.3 billion).

The firm projects adjusted EBITDA in the range of $470 million-$500 million and adjusted free cash flow of $155 million to $185 million.

“Our impressive $7.2 billion of new business wins and high number of new product launches in 2023 lay the foundation for continued growth in 2024 and years to come,” said President and CEO Sachin Lawande.

Price Action: VC shares are trading higher by 0.73% to $118.19 on the last check Tuesday.