Visteon Analysts Cut Their Forecasts After Weak Earnings
Portfolio Pulse from Avi Kapoor
Visteon Corporation reported Q1 earnings below expectations with adjusted earnings of $1.61 per share against the expected $1.68 and sales of $933 million versus the estimated $977.869 million. Despite the weak earnings, Visteon maintained its 2024 full-year sales guidance of $4.0 to $4.2 billion. Following the earnings announcement, Wells Fargo raised its price target from $106 to $108 and upgraded the stock to Equal-Weight, while Baird reduced its price target from $140 to $137 but maintained an Outperform rating. Visteon shares dropped 1.3% to close at $109.66.
April 26, 2024 | 12:25 pm
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NEGATIVE IMPACT
Visteon Corporation reported lower-than-expected Q1 earnings but maintained its 2024 sales guidance. Analysts adjusted their price targets following the announcement.
The short-term impact on Visteon's stock (VC) is likely negative due to the reported earnings miss, which typically leads to a decrease in investor confidence and can result in a short-term decline in stock price. However, the maintenance of the 2024 sales guidance and the mixed reactions from analysts (with one upgrading the stock and another slightly reducing the price target but maintaining a positive outlook) could mitigate some of the negative impact. The slight decrease in share price following the announcement reflects this mixed sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100