A Look Ahead: Visteon's Earnings Forecast

Visteon VC is set to give its latest quarterly earnings report on Thursday, 2024-10-24. Here's what investors need to know before the announcement.

Analysts estimate that Visteon will report an earnings per share (EPS) of $1.89.

Visteon bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.57, leading to a 1.4% drop in the share price on the subsequent day.

Here's a look at Visteon's past performance and the resulting price change:

Visteon Share Price Analysis

Shares of Visteon were trading at $88.26 as of October 22. Over the last 52-week period, shares are down 30.96%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Views on Visteon

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Visteon.

The consensus rating for Visteon is Buy, based on 9 analyst ratings. With an average one-year price target of $123.22, there's a potential 39.61% upside.

Comparing Ratings with Competitors

The analysis below examines the analyst ratings and average 1-year price targets of Phinia, Adient and LCI Indus, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Buy trajectory for Phinia, with an average 1-year price target of $52.5, indicating a potential 40.52% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for Adient, with an average 1-year price target of $25.29, implying a potential 71.35% downside.
• As per analysts' assessments, LCI Indus is favoring an Buy trajectory, with an average 1-year price target of $119.0, suggesting a potential 34.83% upside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for Phinia, Adient and LCI Indus are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Visteon ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Consensus rating and Return on Equity.

Get to Know Visteon Better

Visteon Corp is an automotive supplier. It manufactures electronics products for original equipment vehicle manufacturers including Ford, Nissan, Renault, Mazda, BMW, General Motors, and Honda. The company offers information displays, instrument clusters, head-up displays, infotainment systems, telematics solutions, and Smartcore. The Company's reportable segment is Electronics. The Electronics segment provides vehicle cockpit electronics products to customers, including digital instrument clusters, domain controllers with integrated advanced driver assistance systems, displays, Android-based infotainment systems, and battery management systems. Geographically, it operates in North America, Europe, China, Asia-Pacific, and South America.

Financial Milestones: Visteon's Journey

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Visteon showcased positive performance, achieving a revenue growth rate of 3.15% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Visteon's net margin is impressive, surpassing industry averages. With a net margin of 7.0%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Visteon's ROE excels beyond industry benchmarks, reaching 6.57%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Visteon's ROA excels beyond industry benchmarks, reaching 2.6%. This signifies efficient management of assets and strong financial health.

Debt Management: Visteon's debt-to-equity ratio is below the industry average at 0.4, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Visteon visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.