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Visteon Delivers Upbeat Q4 Results; Shares Up 12.7%

Visteon (NASDAQ: VC) shares jumped almost 12.7% on February 17, after the company delivered stronger-than-expected fourth-quarter results driven by robust growth due to the transformation of the company’s product portfolio.

Spun off from the Ford Motor Company in 2000, Visteon Corporation is a global automotive electronics supplier that designs and manufactures vehicle cockpit electronic products and connected car services for a diversified customer base, including all of the major automakers worldwide.

Q4 Numbers

Q4 adjusted earnings of $1.69 per share grew 59.4% year-over-year. The company reported earnings of $1.06 per share for the prior-year period.

Net sales were flat year-over-year at $786 million, but exceeded consensus estimates of $661.89 million. The beat was driven by the ramp-up of recently launched products as well as favorable pricing.

FY2022 Outlook

Based on robust Q4 results, management provided the financial guidance for FY2022.

The company forecasts net sales to be in the range of $3.15 billion to $3.35 billion, against the consensus estimate of $3.2 billion. Further, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to be in the range of $295 million to $335 million.

CEO Comments

Looking ahead, VC CEO, Sachin Lawande, commented, “In 2022, we anticipate we will grow sales, expand margins, and increase adjusted free cash flow generation driven by continued market out-performance of our next-generation products.”

Wall Street’s Take

Following the robust Q4 results, CFRA upgraded Visteon from Hold to Buy with a price target of $130 (9.4% upside potential) from $100.

The rest of the Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 4 Buys, 1 Hold and 1 Sell. The average Visteon price target of $127 implies 6.91% upside potential to current levels.

Investors Weigh In

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Visteon, with 6% of investors increasing their exposure to VC stock over the past 30 days.

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