Visteon Q4 Revenues Dip 7%, Issues FY24 Revenue Outlook Below Estimates
Portfolio Pulse from Nabaparna Bhattacharya
Visteon Corporation (NASDAQ:VC) reported a 7% decrease in Q4 sales year over year, missing analyst expectations with $990 million in revenue against a forecast of $1.049 billion. Despite the sales dip, adjusted EBITDA rose to $117 million, reflecting strong operational performance and cost discipline. The company missed adjusted EPS estimates, reporting $1.91 against an expected $2.09. Visteon also announced a $106 million share repurchase under a $300 million authorization. For FY24, Visteon forecasts net sales between $4 billion and $4.2 billion, below the $4.3 billion estimate, with adjusted EBITDA between $470 million and $500 million.

February 20, 2024 | 5:21 pm
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NEUTRAL IMPACT
Visteon Corporation reported a decrease in Q4 sales but an increase in adjusted EBITDA. The company missed EPS estimates and announced a lower than expected FY24 revenue outlook.
Despite the negative news of missing sales and EPS estimates, the increase in adjusted EBITDA and the share repurchase program may provide some support to the stock price. However, the lower than expected FY24 revenue outlook could temper investor enthusiasm, leading to a neutral short-term impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100