VC Earnings Prediction
The chart below shows how VC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VC sees a -0.57% change in stock price 10 days leading up to the earnings, and a -1.76% change 10 days following the report. On the earnings day itself, the stock moves by +2.00%. This data can give you a slight idea of what to expect for the next quarter's release.
VC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
939.00M
-5.15%
-4.18%
Gross Margin
14.27%
8.68%
6.73%
Operating Margin
8.84%
6.76%
5.62%
Net Margin
13.31%
-64.68%
226.23%
EPS
4.37
-66.33%
212.14%
No Data Available
VC Earnings Analysis
Visteon Corp Corporation (VC.O) Earnings Conference Call
Positive
Strong Financial Performance: Visteon Corporation reported a strong performance in 2024 with robust sales of $3.87 billion, record adjusted EBITDA of $474 million, and record adjusted free cash flow of $300 million.
New Business Wins Growth: The company secured $6.1 billion of new business wins in 2024, driven by strong demand for large displays, SmartCore, and digital cluster products.
Record Adjusted EBITDA Margin: Adjusted EBITDA margin reached a record 12.3% for the year, a 130 basis point improvement compared to the previous year.
Sales Performance Outperformance: Visteon outperformed the market by four percentage points in sales, with significant growth in the Americas and Europe, particularly in digital clusters and electrification products.
New Product Launches: The company launched 95 new products in 2024, with nearly 30% targeting high-demand areas such as SmartCore and large displays, showcasing strong execution capabilities.
Digital Product Bookings Growth: Visteon achieved significant bookings for digital products, supporting key industry trends and laying a solid foundation for continued growth.
Capital Allocation Strategy: The company demonstrated a commitment to balanced capital allocation, deploying over $100 million to M&A and share repurchases in 2024.
Growth Momentum Forecast: Visteon expects to maintain growth momentum with a forecast of mid to high single-digit growth over the market in 2025, driven by new product launches with major customers.
Sales Growth Projection: The company anticipates a strong performance in 2026 and 2027, targeting $4.15 billion in sales by 2027, representing a 5% growth CAGR.
Financial Flexibility and Growth: Visteon's strong balance sheet and cash flow generation provide significant flexibility for future investments and shareholder returns.
Negative
Sales Decline Forecast: Sales in 2025 are expected to decline slightly due to mid-single-digit declines in customer vehicle production, particularly from major customers like Ford and GM adjusting production to reduce elevated inventories.
Electric Vehicle Sales Outlook: Despite a strong performance in 2024, electric vehicle sales in the US are projected to remain flat in 2025 due to uncertainties surrounding tariffs and incentives.
Sales Decline Anticipation: In China, Visteon anticipates a continued decline in sales, with the expectation that 2025 will represent the low point before a recovery in 2026, reflecting ongoing market share losses to domestic OEMs.
Working Capital Outflow Impact: The company expects a modest outflow in working capital for 2025, reversing one-time benefits seen in 2024, which could impact cash flow generation.
2025 EBITDA Forecast Challenges: The forecast for adjusted EBITDA in 2025 is between $450 million and $480 million, indicating potential challenges in maintaining the previous year's record levels due to normalized engineering spending and foreign exchange headwinds.
Tariff Impact on Supply Chain: The anticipated impact of tariffs, if enacted, could significantly affect the supply chain and overall financial performance, although the guidance does not currently account for these potential impacts.
VC FAQs
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VC Earning Call Sentiment
Visteon Corporation (NASDAQ:VC) Q4 2024 Earnings Call Transcript
VC.O
-2.28%Positive
Visteon's earnings call indicates a positive outlook with new business wins, product launches, and strong financial performance, including record free cash flow and improved margins. Despite challenges in China and foreign exchange headwinds, the company raised its guidance for EBITDA and free cash flow. Share repurchases and a focus on growth in Asia and electrification bolster the sentiment. The Q&A session highlighted growth opportunities in Asian OEMs and SmartCore bookings, supporting a positive sentiment. Given the market cap, the stock price is likely to experience a positive movement of 2% to 8% over the next two weeks.
