Visteon (NASDAQ:VC) Hits New 12-Month Low on Disappointing Earnings

Key Points

• Visteon shares fell to a new 52-week low, trading as low as $81 after the company reported disappointing quarterly earnings.
• Quarterly EPS was $0.19, far below the $2.28 analyst consensus, although revenue rose 5.8% year over year to $970 million and exceeded estimates.
• Despite the earnings miss, analysts maintain a “Moderate Buy” consensus with an average price target of $126.82; Visteon also pays a $0.375 quarterly dividend, yielding approximately 1.9%.

Visteon Corporation (NASDAQ:VC - Get Free Report) reached a new 52-week low during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $81.00 and last traded at $80.5820, with a volume of 2,262 shares changing hands. The stock had previously closed at $84.83.

The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.28 by ($2.09). Visteon had a return on equity of 14.61% and a net margin of 5.58%. The business had revenue of $970.00 million for the quarter, compared to analyst estimates of $936.38 million. During the same period in the previous year, the company posted $2.15 earnings per share. The business's revenue for the quarter was up 5.8% on a year-over-year basis.

Visteon Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.3750 per share. This represents a $1.50 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Tuesday, September 1st. Visteon's dividend payout ratio is presently 19.61%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. UBS Group lowered their price target on shares of Visteon from $130.00 to $107.00 and set a "buy" rating on the stock in a research report on Wednesday, October 7th. Barclays lowered their target price on Visteon from $145.00 to $125.00 and set an "overweight" rating for the company in a research note on Friday, October 9th. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Visteon from $133.00 to $132.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Weiss Ratings reissued a "hold (c)" rating on shares of Visteon in a report on Wednesday, July 29th. Finally, Royal Bank Of Canada decreased their target price on Visteon from $129.00 to $127.00 and set an "outperform" rating for the company in a research report on Monday, October 12th. Eight equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Visteon has an average rating of "Moderate Buy" and a consensus price target of $126.82.

Institutional Trading of Visteon

Institutional investors have recently modified their holdings of the company. Public Employees Retirement System of Ohio bought a new stake in Visteon during the second quarter worth approximately $2,358,000. Integrated Wealth Concepts LLC bought a new position in Visteon during the second quarter valued at about $3,057,000. Dimensional Fund Advisors LP lifted its stake in shares of Visteon by 14.3% in the first quarter. Dimensional Fund Advisors LP now owns 1,403,695 shares of the company's stock worth $127,879,000 after buying an additional 175,679 shares during the last quarter. Engineers Gate Manager LP grew its stake in shares of Visteon by 60.9% in the second quarter. Engineers Gate Manager LP now owns 88,766 shares of the company's stock worth $8,806,000 after acquiring an additional 33,612 shares during the last quarter. Finally, Empowered Funds LLC raised its holdings in Visteon by 25.5% in the 1st quarter. Empowered Funds LLC now owns 172,936 shares of the company's stock valued at $15,756,000 after acquiring an additional 35,111 shares in the last quarter. Hedge funds and other institutional investors own 99.71% of the company's stock.

Visteon Stock Down 5.1%

The business's fifty day moving average price is $95.70 and its 200 day moving average price is $103.62. The company has a current ratio of 1.78, a quick ratio of 1.45 and a debt-to-equity ratio of 0.17. The company has a market capitalization of $2.15 billion, a P/E ratio of 10.83, a P/E/G ratio of 0.60 and a beta of 1.30.

About Visteon

Visteon Corporation NASDAQ: VC is a global automotive technology company that develops and supplies electronic systems for vehicle manufacturers. Its products are designed to support the digital, connected and increasingly electrified vehicle, with a focus on improving the driving experience, vehicle functionality and energy efficiency.

The company's product portfolio includes digital instrument clusters, displays, infotainment systems, connected-car technologies, cockpit domain controllers, climate-control electronics and other vehicle control systems.

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