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On Thursday, BofA Securities sustained their positive stance on Visteon shares (NASDAQ:VC), reaffirming a Buy rating and a $110.00 price target. According to InvestingPro data, the stock appears undervalued at its current price of $76.51, trading at an attractive P/E ratio of 9.2x. Visteon’s first-quarter operating earnings per share (EPS) of $2.40 surpassed both BofA’s projection of $1.75 and the consensus estimate of $1.76. The company’s revenue also exceeded expectations, coming in at $934 million compared to BofA’s estimate of $891 million.
Visteon reported a higher gross margin of 14.8%, which was more than the 12.7% BofA had anticipated. Operating expenses were slightly lower than expected at $47 million against the forecasted $49 million. As a result, the adjusted EBITDA of $129 million for the quarter was above BofA’s estimate of $104 million and the consensus of $105 million. InvestingPro analysis reveals the company maintains strong financial health with a "GREAT" overall score, supported by robust cash flows that adequately cover interest payments.
Although Visteon included approximately $15 million in one-time items in its adjusted EBITDA, the results were still robustly above forecasts. Adjusting for these items, the adjusted EBITDA margin would have been about 12.2%, which is slightly below the 12.7% BofA predicted. Visteon achieved a gross margin of over 10% in the first quarter of 2025, which was attributed to the successful ramp-up of recent digital cockpit product launches. This performance was slightly offset by lower customer recoveries, annual pricing adjustments, and foreign exchange effects. The company’s gross margin was a notable improvement from the 2% reported in the fourth quarter of 2024 and was considered a strong outcome given the persistent market challenges in China.
In the first quarter of 2025, Visteon secured $1.9 billion in gross new business wins, which included $1 billion with Asian OEMs, excluding China. These achievements underscore the company’s continued growth and success in the automotive industry despite the dynamic market conditions. InvestingPro subscribers can access 8 additional key insights about Visteon’s financial health and growth prospects through our comprehensive Pro Research Report, which provides detailed analysis of the company’s performance metrics and future potential.
In other recent news, Visteon Corporation reported first-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings per share of $2.36, surpassing the consensus estimate of $1.81. Revenue for the quarter was $934 million, slightly above the anticipated $909.78 million and nearly identical to the $933 million reported in the same period last year. Visteon’s sales growth outpaced customer vehicle production rates by 10%, driven by the success of its digital cockpit product launches. The company secured $1.9 billion in new business, with significant wins in Asia excluding China. Visteon launched 16 new products, focusing on digital cockpit and flexible battery management system technologies. Despite the strong performance, the company withdrew its full-year 2025 guidance due to uncertainties in the automotive industry, specifically around tariff dynamics. Visteon ended the quarter with a net cash position of $343 million, highlighting its financial strength.
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